THE INFLUENCE OF CORPORATE GOVERNANCE, FINANCIAL PERFORMANCE, AND MARKET COMPETITIVENESS ON FIRM VALUE IN DEVELOPING ECONOMIES

Abstract This study examines the influence of corporate governance, financial performance, and market competitiveness on firm value in developing economies, where market dynamics and regulatory environments are often volatile. The research highlights the critical role of strong corporate governance structures in ensuring transparency, accountability, and effective decision-making, which in turn enhances financial performance. Firms that demonstrate solid financial performance—measured through profitability and operational efficiency—are more likely to attract investor confidence and increase their market value. Additionally, market competitiveness drives firms to innovate and improve their operations, further boosting financial success and firm value. The interplay between these three factors is significant, as firms that align their governance practices with competitive strategies and financial objectives are better positioned to achieve long-term value creation. The study suggests that developing economies must focus on enhancing corporate governance and fostering competitive markets to maximize firm value. Policymakers are recommended to create regulatory frameworks that promote transparency, fair competition, and financial stability, contributing to sustainable economic growth in emerging markets. The findings underscore the importance of a holistic approach that integrates governance, performance, and competitiveness to drive firm success.