Abstract:
corporate governance received a considerable attention during last 20 years' Thesecgrity and exchange commission of Sri Lanka is committed to improving andpracticing the use of international best practices which is essential for the developmentcapital market improvement of professionalism among market participate and raisingthe profile of Sri Lankan capital malket in keeping with its objectives' This researchaims to investigate the any significant relationship between board characteristics andfirm performance of listed companies in Sri Lanka' The effectiveness of the boardcharacteristics is analyzed through the use of difflerent variables: Board size' CEOduality, Proportion of non-executive directors' The firm performance is measured byreturn on assets (ROA), return on equity (ROE) and Tobin's Q'To get the efficiency Performance tlrough the best corporate governance top 20companies listed in cSE based on their market capitalization were selected as thesample from 2013/ 14 to 2017/18 and data collected from the annual reports of listedcompanies in the Colombo Stock Exchange . Correlation and regtession utilized to findout the significance between board characteristics impacts on financial performance'Hypothesis were tested by using multiple regression analysis and the result showed thatmore dimensions had significant impact on firm performance. ultimately according tothe research findings, the researcher can have concluded that board size had asignifrcant n6gative impact on the firm perforrnance' CEO duality and firmperformance had a partially negative signifrcant relationship' But proportion of nonexecutive directors on the board had partially positive significant relationship with firmperformance