Abstract

This study investigated the influence of corporate governance mechanisms on firm performance of public listed companies in Iraq. Specifically, the study examined the effect of managerial ownership, ownership concentration (block ownership, local institutional ownership, and foreign institutional ownership), and external audit on firm performance. The study utilized data extracted from the annual report of public listed companies on the Iraqi Stock Exchange over the period 2012 – 2015. The result revealed a positive and significant relationship between managerial ownership and firm performance. While it was found that block ownership does not have any relationship with firm performance. Local institutional ownership, foreign institutional ownership, and external audit have a negative and significant relationship with firm performance. This implies that managerial ownership improves firms performance while block ownership, local institutional ownership, and foreign institutional ownership and likewise external audit are not effective tools in improving firm performance. The findings of this study have implications on the policy-making that are meant to reconcile the difference between agent and principal.