Corporate Governance Reforms and Firm Performance in the European Union-An Interdisciplinary Legal and Economic Analysis

• Dr. Markus Keller

  Department of Business Administration and Economic Law University of Mannheim Mannheim, Germany

  Author

Corporate governance reforms have been a central focus of policy and regulatory efforts within the European Union over the past decade. These reforms aim to enhance transparency, accountability, and firm performance while aligning corporate behavior with broader economic and social objectives. This paper examines the relationship between corporate governance reforms and firm performance in the European Union through an interdisciplinary lens combining management theory, legal frameworks, and economic analysis. Using recent empirical evidence and regulatory developments from 2023 to 2025, the study evaluates the effectiveness of governance mechanisms such as board independence, shareholder rights, executive remuneration regulation, and sustainability reporting requirements. The findings indicate that well-designed governance reforms positively influence firm performance and investor confidence, though their impact varies across legal systems and economic contexts. The paper concludes with policy recommendations to strengthen governance convergence across EU member states.

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