Journal of Quality in Health Care & Economics (JQHE)

ISSN: 2642-6250

Research Article

The Impact of Internal Corporate Governance Mechanisms on Profitability in Companies Listed in the Stock Market

Authors: Elsayed A*

DOI: 10.23880/jqhe-16000279

Abstract

This paper attempts to investigate the effects of the internal corporate governance mechanisms represented in (the size of the board of directors, CEO duality, the administrative ownership, and the ownership of Block Shareholders Ownership) on the profitability of the companies listed on the Egyptian Stock Exchange. The sample of the study reached (85) companies listed on the Egyptian Stock Exchange for the period 2012 to 2016. The researcher relied on the method of "Moment Structures Analysis (AMOS) Of Analysis to study the relationships between the study variables. A program specially prepared by Dr. Andrew F. Hayes is to test the direct effects of the sub-elements of one variable on the sub-elements of another variable. The methodology of this method depends on the Sobel test and the Bootstrap method. The research has reached several results, the most important of which are: There is a positive, statistically significant impact relationship between the internal corporate governance mechanisms with its various dimensions and profitability, and the researcher has recommended that companies should strive to comply with corporate governance rules and support internal corporate governance mechanisms because of their positive impact on profitability.

Keywords: Corporate Governance; Profitability; Board of Directors; CEO Duality; Administrative Ownership; Block Shareholders Ownership

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