Impact of Risk Management, Board Effectiveness and Innovation on Firm Performance- a Mediated and Moderated Model of Corporate Governance and Government Policy
PhD Scholar, Economics and Management School, Xi’an University of Technology. China
Dr. Ahsan Akbar
Department of Informatics and Quantitative Methods, Faculty of Informatics and Management, University of Hradec Kralove, 500 03 Hradec Králové, Czechia
Libuse Svobodova
Department of Economics, Faculty of Informatics and Management, University of Hradec Kralove, Hradec Kralove, Czech Republic
Dr. Martina Hedvicakova
Department of Economics, Faculty of Informatics and Management, University of Hradec Kralove, Hradec Kralove, Czech Republic
Abstract
There has been resurgence in interest in the relationship between corporate governance and firm performance as a result of major corporate scandals and failures around the world. Businesses invest a lot of tangible and intangible resources to achieve greater performance and a competitive advantage in the current volatile market. Therefore, the present study explores the relationship between risk management, board effectiveness, innovation and corporate governance: Additionally, it looks into the mediating and moderating effects of corporate governance and government policy. The resource-based perspective theory and agency theory were mostly employed in this study to examine the association between corporate governance and firm performance. However, results indicate that A good connection exists between risk management, board effectiveness, innovation and corporate governance. Results reveal that corporate governance significantly mediated the relationship between risk management, board effectiveness, innovation, and the firm’s performance. More importantly, government policy significantly moderated the relationship between corporate governance and firm’s performance.