Modelling of Corporate Governance Performance Indicators


  • Alena Kocmanova Brno University of Technology
  • Iveta Simberova Brno University of Technology



corporate governance, indicators, performance, sustainability, multi-dimensional statistical methods


This article is focused on modelling of performance indicators for corporate governance, which are designed to measure the performance of a company along with environmental and social (ESG) indicators. The ESG indicators thus become important performance benchmarks for investors in the European Union and other parts of the world. Performance indicators in the Czech manufacturing industry were researched in Project No. P403/11/2085 "Construction of Methods for Multi-Factorial Assessment of Company Complex Performance in Selected Sectors" at the Faculty of Business and Management, Brno University of Technology (BUT FBM), funded by Grant Agency of the Czech Republic (GACR). The article intends to propose performance indicators of corporate governance suitable for companies in manufacturing industries per CZ-NACE. These performance indicators of corporate governance are the result of an extensive review and a theoretical assessment of numerous literary sources, various materials of international organizations (such as GRI, UNCTAD, IFAC, IFRS, EFFAS-DVFA, CFA), OECD Principles of Corporate Governance, and EU Green Paper, the essence of which was incorporated into the questionnaires used in the survey. Seventy-nine companies were selected from the compiled data base and personally contacted. These were legal enterprises with more than 250 employees by the EU criteria. Selection of significant indicators proceeded from the inlet database, analysed and verified by cluster analysis. The objective of cluster analysis working with all initial input indicators, obtained by the analysis of available expert sources and empirical research, was the identification of particularities of variables, having any impact on the results of other methods of subsequent research stages. Selection of significant indicators for reviewed industry from the input database was the aim. The purpose was not to substitute identified database, but to establish an alternative file of appropriate variables. The objective of further data processing was the reduction of original broad file of indicators, namely by expert analysis and subsequent decision made by the team of authors, representing the input for subsequent application of multi-dimensional statistical method. The factor analysis yielded four categories of corporate governance measurement areas: 1) Monitoring and Reporting 2) CG Effectiveness 3) CG Structure 4) Compliance.The company itself should select its key Corporate Governance indicators on the basis of their significance and from the point of its strategy. These performance indicators should facilitate the companies to prove the progress towards sustainability objectives and to guarantee their environmental, social and economic impact coverage. The application of key performance indicators in a particular organizational context can be demanding. The understanding of their application and most appropriate implementation into the internal management shall be necessary prior to company’s decision regarding the measures of key performance indicators.


Author Biographies

Alena Kocmanova, Brno University of Technology

Faculty of Business and Management

Institute of Economics

Iveta Simberova, Brno University of Technology

Faculty of Business and Management

Institute of Management

Marketing, Commerce, Management

Additional Files