López Quesada, ErikaCamacho Miñano, María del MarIdowu, Samuel O.2023-06-172023-06-1720181472-070110.1108/CG-01-2017-0011https://hdl.handle.net/20.500.14352/19035Purpose – The purpose of this paper is to analyze the effect of corporate governance practices on firms’ financial performance, as measured by comprehensive income (CI). Design/methodology/approach – Using a sample of 237 firms from the Standards & Poor (S&P) 500 index during the years 2004-2009, multivariate statistical analyses are conducted to confirm the authors’ main hypothesis. Findings – The results indicate that having high levels of corporate governance culture has a positive impact on a measure of firms’ financial performance, namely, CI. Furthermore, they indicate a positive correlation between a higher percentage of external directors and financial performance, and a negative relationship between number of board meetings and financial performance. Originality/value – The main contribution of this research is that good corporate governance strategies deliver superior financial performance for businesses in terms of CI. This serves as a method of value creation, which is the ultimate goal of a business. In addition to the use of CI as an indicator of financial performance, a unique measure of corporate governance level is tested.engjournal articlehttps://doi.org/10.1108/CG-01-2017-0011open accessFinancial performanceCorporate governanceBoard of directorsFinancial reportingAdministración de empresasEmpresasFinanzas5311 Organización y Dirección de Empresas5311 Organización y Dirección de Empresas