Abstract
This study examines the determinants of corporate performance in an emerging market setting, focusing on firms listed on the Dhaka Stock Exchange (DSE) during the period 2020–2025. The research incorporates both traditional firm-specific factors and contemporary determinants, including corporate governance quality, environmental, social, and governance (ESG) practices, and macroeconomic stability. Using panel data collected from listed companies, the study employs Ordinary Least Squares (OLS) and Fixed Effects regression models to analyze the impact of selected variables on corporate performance, measured by Return on Assets (ROA). The empirical findings reveal that firm size, governance quality, and ownership structure significantly and positively influence corporate performance. Moreover, ESG practices contribute positively to firm profitability, with stronger effects observed over the long term. In contrast, macroeconomic variables, particularly inflation and interest rates, do not exhibit a significant direct effect on corporate performance. These findings suggest that internal organizational capabilities, effective governance mechanisms, and sustainable business practices play a more important role in enhancing firm performance than external economic conditions. The study contributes to the growing literature on corporate performance determinants in emerging markets by providing empirical evidence from Bangladesh. The findings offer practical implications for corporate managers, investors, and policymakers by emphasizing the importance of strong governance structures and sustainable business strategies in achieving long-term organizational success and improved financial performance.
Keywords
Corporate Performance, ROA, ESG, Corporate Governance, Emerging Markets, Dhaka Stock Exchange
1. Introduction
Corporate performance remains a central issue in financial economics and strategic management. In emerging markets such as Bangladesh, firms operate within a dynamic environment shaped by globalization, technological advancement, and external shocks, including the COVID-19 pandemic.
Between 2020 and 2025, Bangladesh’s capital market experienced significant structural transformation, characterized by increased digitalization of trading systems, regulatory reforms, and rising institutional participation. These developments have altered the determinants of firm performance and necessitate a re-evaluation of traditional theoretical frameworks.
While classical theories emphasize firm size, leverage, and market conditions as key drivers of performance, contemporary research highlights the growing importance of corporate governance, sustainability practices, and ownership structure. In particular, governance quality and institutional ownership have emerged as critical factors influencing firm efficiency and profitability.
This study contributes to the literature by integrating both traditional and modern determinants of corporate performance in the context of the Dhaka Stock Exchange.
2. Objectives of the Study
The study aims to:
1) Identify firm-specific determinants of corporate performance.
2) Examine the role of macroeconomic variables in influencing firm performance.
3) Analyze the impact of corporate governance and ownership structure.
4) iv) Investigate the influence of ESG practices on firm profitability.
3. Literature Review
3.1. Firm-Specific Determinants
Recent literature continues to identify firm-specific factors as major determinants of corporate performance, particularly in emerging markets. Firm size remains positively associated with profitability due to economies of scale, market power, and improved access to financial resources.
Narjess Boubakri, Sabri Boubaker, & Helen Wang. argue that larger firms benefit from stronger governance structures and greater resilience in volatile markets
| [1] | Narjess Boubakri, Sabri Boubaker, & Helen Wang. (2021). Corporate governance in emerging markets: A selective review and an agenda for future research. Emerging Markets Review, 46, 100758. |
[1]
. Similarly, Yasmeen Bashir, Yiwei Zhao, Huan Qiu, & Zeeshan Ahmed. find that firm-level characteristics significantly influence value creation in emerging economies
| [4] | Yasmeen Bashir, Yiwei Zhao, Huan Qiu, & Zeeshan Ahmed. (2023). Environmental, social, and governance performance and value creation in product market: Evidence from emerging economies. Journal of Risk and Financial Management, 16(12), 517. |
[4]
.
Leverage continues to show mixed effects on performance. While debt can improve financing opportunities, excessive leverage raises financial risk and may reduce profitability. Operational efficiency and effective asset utilization also remain significant drivers of firm performance, particularly in resource-constrained markets
| [2] | Muhammad Aydoğmuş, Gökhan Gülay, & Kerem Ergun. (2022). ESG performance and firm value: Evidence from emerging markets. Borsa Istanbul Review, 22 (Supplement), S119-S127. |
[2]
.
Recent evidence by Nguyen, T. H., & Nguyen, V. C. indicates that firm size and liquidity positively affect profitability among listed firms in Asian emerging markets
| [9] | Nguyen, T. H., & Nguyen, V. C. (2021). Firm characteristics and profitability: Evidence from emerging Asian markets. Journal of Asian Finance, Economics and Business, 8(6), 225–234. |
[9]
. Likewise, Dinh, T. H., & Pham, H. T. report that efficient asset utilization significantly improves corporate performance, particularly in developing economies
| [10] | Dinh, T. H., & Pham, H. T. (2022). Asset efficiency and corporate performance in developing economies. International Journal of Financial Studies, 10(4), 89. |
[10]
.
3.2. Corporate Governance and Ownership Structure
Recent studies emphasize the growing importance of governance mechanisms in improving corporate performance. Board independence, audit quality, and ownership concentration contribute to reducing agency problems and improving strategic decision-making. Narjess Boubakri, Sabri Boubaker, & Helen Wang.show that sound governance practices strengthen firm competitiveness in emerging markets
| [1] | Narjess Boubakri, Sabri Boubaker, & Helen Wang. (2021). Corporate governance in emerging markets: A selective review and an agenda for future research. Emerging Markets Review, 46, 100758. |
[1]
.
Moreover, institutional ownership has been found to improve monitoring efficiency and transparency, positively affecting firm value. Paul Ludwig and Remmer Sassen further highlight that internal governance mechanisms play a critical role in promoting both financial performance and sustainability outcomes
| [3] | Paul Ludwig & Remmer Sassen. (2022). Which internal corporate governance mechanisms drive corporate sustainability? Journal of Environmental Management, 301, 113780. |
[3]
. From Recent evidence Waleed Alahdal, Hasnah Hashim, & Faudziah Almaqtari also suggests that governance diversity enhances firm performance through improved oversight and strategic effectiveness
| [6] | Waleed Alahdal, Hasnah Hashim, & Faudziah Almaqtari. (2024). The moderating role of board gender diversity in ESG and firm performance: Evidence from Gulf countries. Business Strategy and Development. |
[6]
.
Further, Arora, P., & Sharma, demonstrate that board diversity and independent directors significantly improve firm profitability and governance quality
| [11] | Arora, P., & Sharma, A. (2023). Board diversity and firm performance: Evidence from emerging markets. Corporate Governance: The International Journal of Business in Society, 23(2), 345–362. |
[11]
. Ahmed, S., Rahman, M., & Karim, R. find that ownership concentration positively influences corporate performance in South Asian firms through enhanced monitoring mechanisms
| [12] | Ahmed, S., Rahman, M., & Karim, R. (2024). Ownership concentration and corporate performance in South Asian firms. Global Business Review, 25(1), 112–130. |
[12]
.
3.3. ESG and Sustainability Factors
Environmental, Social, and Governance (ESG) factors have emerged as important determinants of long-term firm value. Recent empirical studies indicate that firms with strong ESG practices often achieve improved profitability, lower risk exposure, and stronger stakeholder trust. Muhammad Aydoğmuş, Gökhan Gülay, & Kerem Ergun. provide evidence that ESG performance positively affects firm value in emerging markets
| [2] | Muhammad Aydoğmuş, Gökhan Gülay, & Kerem Ergun. (2022). ESG performance and firm value: Evidence from emerging markets. Borsa Istanbul Review, 22 (Supplement), S119-S127. |
[2]
.
Similarly, Naliniprava Tripathy, & Pratap Chandra Biswal. find that ESG scores significantly enhance financial performance
| [5] | Naliniprava Tripathy, & Pratap Chandra Biswal. (2024). ESG scores and firm performance: Evidence from emerging markets. International Review of Economics & Finance, 89, 1170-1184. |
[5]
, while Ummu Salma Al Azizah, & Razali Haron. show that sustainability practices have become increasingly important in the post-pandemic corporate environment
| [7] | Ummu Salma Al Azizah, & Razali Haron. (2025). The sustainability imperative: Evaluating the effect of ESG on corporate financial performance before and after the pandemic. Discover Sustainability. |
[7]
. These findings support the view that ESG has evolved from a compliance issue into a strategic performance determinant.
Velte, P. reports that firms with stronger ESG performance achieve better financial outcomes and reduced risk exposure
| [13] | Velte, P. (2022). ESG performance and financial performance: A review of empirical evidence. Management Review Quarterly, 72(4), 735–757. |
[13]
. In addition, Li, Y., Wang, X., & Zhang, H. demonstrate that ESG disclosure improves investor confidence and contributes to sustainable profitability in emerging economies
| [14] | Li, Y., Wang, X., & Zhang, H. (2023). ESG disclosure and corporate profitability: Evidence from emerging markets. Sustainability, 15(9), 7124. |
[14]
.
3.4. Macroeconomic Factors
Macroeconomic variables such as inflation and interest rates continue to influence the business environment, although their direct impact on firm performance remains inconclusive. Recent studies suggest that macroeconomic conditions often affect performance indirectly through financing conditions, investment behavior, and market volatility rather than through direct profitability channels.
Yasmeen Bashir, Yiwei Zhao, Huan Qiu, & Zeeshan Ahmed.find limited direct effects of macroeconomic variables on firm value in emerging economies
| [4] | Yasmeen Bashir, Yiwei Zhao, Huan Qiu, & Zeeshan Ahmed. (2023). Environmental, social, and governance performance and value creation in product market: Evidence from emerging economies. Journal of Risk and Financial Management, 16(12), 517. |
[4]
, while Kemal Cek, & Demet Beton Kalmaz. argue that firm-level innovation and governance capabilities often outweigh external macroeconomic influences
| [8] | Kemal Cek, & Demet Beton Kalmaz. (2025). Innovation, governance, inclusion: ESG pillars powering economic growth. Journal of Innovation and Entrepreneurship. |
[8]
.
Additionally, Saha, S., & Sen, K. observe that inflation and exchange-rate fluctuations indirectly influence corporate profitability in developing countries
| [15] | Saha, S., & Sen, K. (2022). Macroeconomic uncertainty and firm performance in developing economies. Economic Modelling, 108, 105743. |
[15]
. Khan, M., Ali, S., & Hussain, T. also conclude that macroeconomic uncertainty affects firm performance mainly through investment and financing channels rather than through direct profitability effects
| [16] | Khan, M., Ali, S., & Hussain, T. (2024). Macroeconomic volatility and corporate profitability: Evidence from emerging economies. International Review of Economics and Finance, 92, 145–160. |
[16]
.
Overall, the recent literature suggests that internal strategic capabilities, governance quality, and sustainability practices play more dominant roles than macroeconomic conditions in explaining corporate performance in emerging markets.
4. Methodology
4.1. Data and Sample
The study utilizes panel data from 53 firms listed on the Dhaka Stock Exchange over the period 2020-2025. The sample includes firms from multiple sectors to ensure representativeness.
4.2. Model Specification
The empirical model is defined as:
ROAit=β0+β1Sizeit+β2Leverageit+β3Governanceit+β4ESGit+β5Ownershipit+β6Macrot+ϵit
4.3. Variables
Dependent Variable:
1) Return on Assets (ROA)
Independent Variables:
Firm-Specific Variables:
1) Firm Size
2) Leverage Ratio
3) Operational Efficiency
4) Dividend Policy
Governance Variables:
1) Board Independence
2) Audit Committee Effectiveness
Emerging Variables:
1) ESG Score
2) Institutional Ownership
Macroeconomic Variables:
1) Inflation Rate
2) Interest Rate
3) Market Capitalization Growth
4.4. Estimation Techniques
1) Ordinary Least Squares (OLS)
2) Fixed Effects Model
3) Robust standard errors to address heteroskedasticity
5. Empirical Results
5.1. Descriptive Statistics
The descriptive statistics indicate moderate variability across variables. Firm size and ESG scores show substantial dispersion, reflecting heterogeneity among firms.
The summary statistics of all variables are presented in
Table 1. The results show moderate variation across firms, indicating a heterogeneous sample.
Table 1. Descriptive Statistics of Variables.
Variable | Mean | Std. Dev | Min | Max |
ROA | 0.085 | 0.032 | 0.01 | 0.18 |
Firm Size | 10.12 | 0.95 | 7.80 | 12.50 |
Leverage | 0.49 | 0.15 | 0.20 | 0.80 |
Governance | 0.65 | 0.12 | 0.40 | 0.90 |
ESG Score | 55.20 | 12.10 | 30.00 | 80.00 |
Ownership | 0.38 | 0.14 | 0.10 | 0.70 |
Inflation | 6.80 | 1.10 | 5.00 | 9.00 |
Interest Rate | 5.90 | 1.20 | 4.00 | 8.00 |
5.2. Correlation Analysis
The correlation matrix indicates a positive association between ROA and firm size, governance, ESG, and ownership, while leverage exhibits a negative relationship.
Table 2 presents the correlation matrix. Firm size, governance, ESG, and ownership show positive correlations with ROA, while leverage has a negative relationship.
Table 2. Correlation Matrix.
Variable | ROA | Size | Lev | Gov | ESG | Own |
ROA | 1 | 0.42 | -0.30 | 0.45 | 0.38 | 0.33 |
Size | | 1 | 0.25 | 0.20 | 0.30 | 0.18 |
Leverage | | | 1 | -0.15 | -0.10 | -0.05 |
Governance | | | | 1 | 0.40 | 0.35 |
ESG | | | | | 1 | 0.28 |
Ownership | | | | | | 1 |
5.3. Regression Analysis
OLS Results
Firm size, governance quality, ESG score, and ownership structure have significant positive effects on ROA. Leverage has a significant negative effect, while macroeconomic variables remain statistically insignificant.
Fixed Effects Results
The fixed effects model confirms the robustness of the OLS findings. Firm-specific variables retain significance, while macroeconomic variables continue to show no direct influence.
5.3.1. Ordinary Least Squares (OLS) Results
Table 3 reports the OLS regression results. Firm size, governance, ESG, and ownership are positively significant, while leverage negatively affects performance.
Table 3. OLS Regression Results (Dependent Variable: ROA).
Variables | Coefficient | Std. Error | t-Statistic | Significance |
Constant | 0.012 | 0.008 | 1.50 | 0.135 |
Firm Size | 0.021*** | 0.004 | 5.25 | 0.000 |
Leverage | -0.018** | 0.007 | -2.57 | 0.011 |
Governance | 0.030*** | 0.006 | 5.00 | 0.000 |
ESG Score | 0.002** | 0.001 | 2.20 | 0.029 |
Ownership | 0.015** | 0.006 | 2.50 | 0.013 |
Inflation | -0.003 | 0.002 | -1.20 | 0.230 |
Interest Rate | -0.002 | 0.002 | -1.10 | 0.270 |
R2 = 0.62, Adjusted R2 = 0.59
(*Note: ***p<0.01, **p<0.05, p<0.10)
5.3.2. Fixed Effects Model Results
To ensure robustness, a panel fixed effects model was estimated. Results are presented in
Table 4.
Table 4. Fixed Effects Regression Results.
Variables | Coefficient | Significance |
Firm Size | 0.019*** | 0.000 |
Leverage | -0.016** | 0.015 |
Governance | 0.028*** | 0.000 |
ESG | 0.002* | 0.050 |
Ownership | 0.013** | 0.020 |
Inflation | Insignificant | |
Interest Rate | Insignificant | |
(*Note: ***p<0.01, **p<0.05, p<0.10)
5.4. Key Findings (Based on Tables 1-4) The empirical analysis provides several important insights into the determinants of corporate performance among firms listed on the Dhaka Stock Exchange.
i. Firm Size as the Most Significant Determinant
Across both OLS and Fixed Effects models (
Tables 3 and 4), firm size exhibits a positive and highly significant relationship with ROA (p < 0.01). This indicates that larger firms tend to achieve higher profitability due to economies of scale, better access to financing, and stronger market positioning.
ii. Negative Impact of Leverage on Performance
Leverage shows a statistically significant negative relationship with ROA (p < 0.05). This suggests that higher debt levels increase financial risk and interest obligations, thereby reducing firm profitability.
iii. Strong Role of Corporate Governance
Corporate governance variables demonstrate a strong positive impact on firm performance in both models. Firms with better governance structures—such as board independence and effective monitoring—tend to perform better.
iv. ESG as an Emerging Determinant
The ESG score has a positive and moderately significant effect (p < 0.05 in OLS; p < 0.10 in Fixed Effects). This indicates that sustainability practices are increasingly contributing to firm performance, especially in the long run.
v. Ownership Structure Matters
Institutional ownership shows a positive and significant relationship with ROA. This implies that institutional investors enhance monitoring, reduce agency problems, and improve firm efficiency.
vi. Insignificance of Macroeconomic Variables
Inflation and interest rate variables are statistically insignificant in both models. This suggests that macroeconomic conditions do not directly influence firm performance in the short run. Instead, firms rely more on internal strategies and management efficiency.
vii. Model Strength and Explanatory Power
The OLS model explains approximately 62% of the variation in firm performance (R2 = 0.62), indicating a strong explanatory capacity of the selected variables. The consistency between OLS and Fixed Effects results confirms the robustness of the findings.
6. Discussion
The results indicate that corporate performance in emerging markets is primarily driven by internal firm characteristics rather than external macroeconomic conditions.
Firm size remains a critical determinant due to economies of scale and resource advantages. Governance mechanisms improve efficiency and reduce agency costs, while ESG practices enhance long-term sustainability and stakeholder confidence.
The insignificance of macroeconomic variables suggests that firms in Bangladesh rely more on internal strategies than external economic conditions for performance enhancement.
7. Conclusion
This study examined the determinants of corporate performance in the Dhaka Stock Exchange for the period 2020-2025. The results show that firm-specific factors are the primary drivers of profitability in emerging markets.
Firm size is found to be the strongest determinant of performance, indicating that larger firms achieve higher profitability due to scale advantages and better resource access. Corporate governance and ownership structure also significantly improve firm performance by enhancing efficiency, monitoring, and transparency. ESG practices are emerging as an important positive factor, reflecting the growing importance of sustainability in corporate strategy.
In contrast, leverage negatively affects profitability, suggesting that higher debt increases financial risk. Macroeconomic variables such as inflation and interest rates show no significant direct impact on firm performance, highlighting the dominance of internal firm characteristics over external economic conditions.
Overall, the study concludes that firm performance in emerging markets is primarily shaped by internal strategic and governance factors rather than macroeconomic influences.
8. Policy Implications
Firms should strengthen governance frameworks and operational efficiency.
Policymakers should promote transparency and regulatory effectiveness.
Investors should incorporate ESG and governance factors into decision-making.
9. Future Research Directions
Future studies should:
1) Conduct sector-specific analyses
2) Examine digital transformation and fintech adoption
3) Explore dynamic panel models
4) Investigate long-term ESG impacts
Abbreviations
DSE | Dhaka Stock Exchange |
ROA | Return on Assets |
ESG | Environmental, Social, and Governance |
OLS | Ordinary Least Squares |
Author Contributions
Shakila Zerin Bony: Conceptualization, Methodology, Investigation, Data curation, Formal analysis, Writing – original draft, Writing – review & editing
Conflicts of Interest
Author declares that there is no conflict of interest regarding the publication of this paper. The author has no financial, professional, or personal relationships that could have influenced the work reported in this study.
References
| [1] |
Narjess Boubakri, Sabri Boubaker, & Helen Wang. (2021). Corporate governance in emerging markets: A selective review and an agenda for future research. Emerging Markets Review, 46, 100758.
|
| [2] |
Muhammad Aydoğmuş, Gökhan Gülay, & Kerem Ergun. (2022). ESG performance and firm value: Evidence from emerging markets. Borsa Istanbul Review, 22 (Supplement), S119-S127.
|
| [3] |
Paul Ludwig & Remmer Sassen. (2022). Which internal corporate governance mechanisms drive corporate sustainability? Journal of Environmental Management, 301, 113780.
|
| [4] |
Yasmeen Bashir, Yiwei Zhao, Huan Qiu, & Zeeshan Ahmed. (2023). Environmental, social, and governance performance and value creation in product market: Evidence from emerging economies. Journal of Risk and Financial Management, 16(12), 517.
|
| [5] |
Naliniprava Tripathy, & Pratap Chandra Biswal. (2024). ESG scores and firm performance: Evidence from emerging markets. International Review of Economics & Finance, 89, 1170-1184.
|
| [6] |
Waleed Alahdal, Hasnah Hashim, & Faudziah Almaqtari. (2024). The moderating role of board gender diversity in ESG and firm performance: Evidence from Gulf countries. Business Strategy and Development.
|
| [7] |
Ummu Salma Al Azizah, & Razali Haron. (2025). The sustainability imperative: Evaluating the effect of ESG on corporate financial performance before and after the pandemic. Discover Sustainability.
|
| [8] |
Kemal Cek, & Demet Beton Kalmaz. (2025). Innovation, governance, inclusion: ESG pillars powering economic growth. Journal of Innovation and Entrepreneurship.
|
| [9] |
Nguyen, T. H., & Nguyen, V. C. (2021). Firm characteristics and profitability: Evidence from emerging Asian markets. Journal of Asian Finance, Economics and Business, 8(6), 225–234.
|
| [10] |
Dinh, T. H., & Pham, H. T. (2022). Asset efficiency and corporate performance in developing economies. International Journal of Financial Studies, 10(4), 89.
|
| [11] |
Arora, P., & Sharma, A. (2023). Board diversity and firm performance: Evidence from emerging markets. Corporate Governance: The International Journal of Business in Society, 23(2), 345–362.
|
| [12] |
Ahmed, S., Rahman, M., & Karim, R. (2024). Ownership concentration and corporate performance in South Asian firms. Global Business Review, 25(1), 112–130.
|
| [13] |
Velte, P. (2022). ESG performance and financial performance: A review of empirical evidence. Management Review Quarterly, 72(4), 735–757.
|
| [14] |
Li, Y., Wang, X., & Zhang, H. (2023). ESG disclosure and corporate profitability: Evidence from emerging markets. Sustainability, 15(9), 7124.
|
| [15] |
Saha, S., & Sen, K. (2022). Macroeconomic uncertainty and firm performance in developing economies. Economic Modelling, 108, 105743.
|
| [16] |
Khan, M., Ali, S., & Hussain, T. (2024). Macroeconomic volatility and corporate profitability: Evidence from emerging economies. International Review of Economics and Finance, 92, 145–160.
|
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APA Style
Bony, S. Z. (2026). Determinants of Corporate Performance in Emerging Markets Evidence from the Dhaka Stock Exchange. International Journal of Business and Economics Research, 15(4), 83-88. https://doi.org/10.11648/j.ijber.20261504.11
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ACS Style
Bony, S. Z. Determinants of Corporate Performance in Emerging Markets Evidence from the Dhaka Stock Exchange. Int. J. Bus. Econ. Res. 2026, 15(4), 83-88. doi: 10.11648/j.ijber.20261504.11
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AMA Style
Bony SZ. Determinants of Corporate Performance in Emerging Markets Evidence from the Dhaka Stock Exchange. Int J Bus Econ Res. 2026;15(4):83-88. doi: 10.11648/j.ijber.20261504.11
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@article{10.11648/j.ijber.20261504.11,
author = {Shakila Zerin Bony},
title = {Determinants of Corporate Performance in Emerging Markets Evidence from the Dhaka Stock Exchange},
journal = {International Journal of Business and Economics Research},
volume = {15},
number = {4},
pages = {83-88},
doi = {10.11648/j.ijber.20261504.11},
url = {https://doi.org/10.11648/j.ijber.20261504.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20261504.11},
abstract = {This study examines the determinants of corporate performance in an emerging market setting, focusing on firms listed on the Dhaka Stock Exchange (DSE) during the period 2020–2025. The research incorporates both traditional firm-specific factors and contemporary determinants, including corporate governance quality, environmental, social, and governance (ESG) practices, and macroeconomic stability. Using panel data collected from listed companies, the study employs Ordinary Least Squares (OLS) and Fixed Effects regression models to analyze the impact of selected variables on corporate performance, measured by Return on Assets (ROA). The empirical findings reveal that firm size, governance quality, and ownership structure significantly and positively influence corporate performance. Moreover, ESG practices contribute positively to firm profitability, with stronger effects observed over the long term. In contrast, macroeconomic variables, particularly inflation and interest rates, do not exhibit a significant direct effect on corporate performance. These findings suggest that internal organizational capabilities, effective governance mechanisms, and sustainable business practices play a more important role in enhancing firm performance than external economic conditions. The study contributes to the growing literature on corporate performance determinants in emerging markets by providing empirical evidence from Bangladesh. The findings offer practical implications for corporate managers, investors, and policymakers by emphasizing the importance of strong governance structures and sustainable business strategies in achieving long-term organizational success and improved financial performance.},
year = {2026}
}
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TY - JOUR
T1 - Determinants of Corporate Performance in Emerging Markets Evidence from the Dhaka Stock Exchange
AU - Shakila Zerin Bony
Y1 - 2026/07/11
PY - 2026
N1 - https://doi.org/10.11648/j.ijber.20261504.11
DO - 10.11648/j.ijber.20261504.11
T2 - International Journal of Business and Economics Research
JF - International Journal of Business and Economics Research
JO - International Journal of Business and Economics Research
SP - 83
EP - 88
PB - Science Publishing Group
SN - 2328-756X
UR - https://doi.org/10.11648/j.ijber.20261504.11
AB - This study examines the determinants of corporate performance in an emerging market setting, focusing on firms listed on the Dhaka Stock Exchange (DSE) during the period 2020–2025. The research incorporates both traditional firm-specific factors and contemporary determinants, including corporate governance quality, environmental, social, and governance (ESG) practices, and macroeconomic stability. Using panel data collected from listed companies, the study employs Ordinary Least Squares (OLS) and Fixed Effects regression models to analyze the impact of selected variables on corporate performance, measured by Return on Assets (ROA). The empirical findings reveal that firm size, governance quality, and ownership structure significantly and positively influence corporate performance. Moreover, ESG practices contribute positively to firm profitability, with stronger effects observed over the long term. In contrast, macroeconomic variables, particularly inflation and interest rates, do not exhibit a significant direct effect on corporate performance. These findings suggest that internal organizational capabilities, effective governance mechanisms, and sustainable business practices play a more important role in enhancing firm performance than external economic conditions. The study contributes to the growing literature on corporate performance determinants in emerging markets by providing empirical evidence from Bangladesh. The findings offer practical implications for corporate managers, investors, and policymakers by emphasizing the importance of strong governance structures and sustainable business strategies in achieving long-term organizational success and improved financial performance.
VL - 15
IS - 4
ER -
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