Influence of governance modes on financial performance of Beninese small and medium-sized enterprises

Abstract

The vision of corporate governance has proven essential to reduce agency costs and have effective governance which helps reduce business failures. But, the results of research on the different modes of governance of SMEs, influencing the financial performance of these companies have been the source of several research works., This research is both theoretical and empirical, with contradictory results giving rise to debates not only on the presence or absence of a mode of good governance, but also its influence on the performance of the firm. The main objective of this paper is to assess the influence of governance modes on the financial performance of Beninese small and medium-sized enterprises. The sample of this study is made up of 175 small and medium-sized Beninese companies operating in several sectors of activity (starts, service provision, manufacturing industry, construction etc.) in the departments of Littoral and Atlantique. The statistical and econometric analyzes carried out on this sample of 175 small and medium-sized Beninese companies made it possible to obtain the following results: it appears that the participation of the manager in the capital has a positive influence on the financial performance of small and medium-sized companies. The manager's remuneration policy has a positive effect on the financial performance of small and medium-sized businesses. This research has an interesting contribution for the different SME players. Because this article allows, through these results, the latter to know the dimensions of the governance modes on which to act to obtain better financial performance.

Keywords: Performance; leader; capital; governance; SMEs.

JEL classification : L25, L26

Type du papier: Theoretical Research or Empirical Research