IMPACT OF CORPORATE GOVERNANCE RULES ON FIRM PERFORMANCE IN UAE

Based on the literature available on corporate governance (CG) and its impact on firm performance, there is a introduced in 2009 for implementation from 2010. The aim of the study was to understand the impact of CG componentsboard size, financial expert in audit committees on firm Return on Equity (ROE) keeping total assets as control variable were assessed using secondary data on firms listed in Abu Dhabi the period of 2008-2009 (pre-CG) and 2011-2012 (post-CG) periods. The data were analysed using statistical techniques. The results showed that implementation of good governance practices need not necessarily increase or improve firm performance in the short-term as other external economic factors may have a direct impact on corporate performance. This research has implications for the UAE firms looking to improve their performance.