  The objective of this study is to examine empirically the impact of good
corporate governance on financial performance of United Kingdom non-financial
listed firms. Agency theory and stewardship theory serve as the bases of a
conceptual model. Five corporate governance mechanisms are examined on two
financial performance indicators, return on assets (ROA) and Tobin's Q,
employing cross-sectional regression methodology. The conclusion drawn from
empirical test so performed on 252 firms listed on London Stock Exchange for
the year 2014 indicates a positive or a negative relationship, but also
sometimes no effect, of corporate governance mechanisms impact on financial
performance. The implications are discussed. Thereby, so distinguishing effects
due to causes, we present a proof that, when the right corporate governance
mechanisms are chosen, the finances of a firm can be improved. The results of
this research should have some implication on academia and policy makers
thoughts.
