Corporate Governance and CEO Risk Incentives, Impact on Firm PerformanceIntroduction:Corporate governance is a very important element that can provide insights on how to maximize shareholder wealth. Good corporate governance plays a very important role in increasing the market value of companies. Because good corporate governance defines the rights and duties of the company's stakeholders, including shareholders, management and the board of directors. Good business support managers have focused on improving corporate governance performance. Good corporate governance also serves the best interests of shareholders, investors, customers and corporate governance providers. Also helps to overcome the bad image and reputation of the organization and highlight the fraud failure and reason of the organization. Maximizing shareholder wealth is an important goal of corporate governance that cannot be ignored at any time. While Berle and Means (1932) were the first to present the theory of corporate governance and many authors follow this part and develop new theories, Modiglani and Miller (1958) develop the theory of corporate structure. capital, Jensen and Meckling (1976). Define agency theory (contract between the principles and the agent's services on behalf of the principle). Corporate governance is essentially the division of rights and responsibilities among stakeholders, managers, for the purpose of decision-making and regulation of its affairs. Capital structure refers to the capital structure which is a mixture of percentage of the money working in the business. Two forms of capital are available: debt capital and equity. Each capital has its own management, defining the importance of ...... middle of paper ...... having the resources and mechanisms necessary to indirectly influence the CEO. Some have pay television and others sit on the board of directors. A leader may bring selfish, fraudulent, unethical, illegal or other CEO behavior to the attention of other employees or the board of directors or, in the extreme, regulators, the media or even the forces order (Dyck et al., 2010). authorities. In terms of incentives to monitor the CEO, the second captain not only has a fiduciary duty to provide important and accurate information to the board, but he also monitors the CEO. In this study, I perform the following steps….• introduction.• provide an overview of the existing literature on the topic.• explain the data, variables, and methodology employed during the empirical work.• present and discuss the results of the study.• Finally, briefly concludes the entire discussion..