A study on the relationship between corporate governance and financial performance from the perspective on enterprise successor selection

Corporate managers play a critical role in corporate governance and financial performance, and continuing the development of corporate governance and financial performance becomes an important consideration in selecting enterprise successors. The past research mostly focused on the discussions between corporate governance and financial performance, but not from the perspective on enterprise successor selection. For this reason, the relationship between corporate governance, financial performance, and enterprise successor selection is discussed in this study. The research outcomes conclude that: 1.Corporate governance presents significantly positive effects on financial performance, 2. Enterprise successor selection has remarkably positive effect on corporate governance, 3. Enterprise successor selection shows notably positive effect on financial performance, and 4. Enterprise successor selection reveals remarkably moderating effect on the relationship between corporate governance and financial performance. Consequently, it is suggested to take enterprise successor selection into account when developing corporate governance and financial performance strategies.