The total number of listed companies in Sri Lanka is 295. These companies are registered in less than 20 business sectors. Of these, in 2016, the top ten are ahead of the top ten of John Keells Holding, Commercial Bank, Mas Holding, Dialog Axiata, Harleys, Aitken Spence, Uniliever, Cargills, Hemas and Sampath Bank. Although these companies are the best companies, even in the 14th year of comparison, some companies made profits compared to the previous year, while others lost their losses. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Although the rights of a company belong to the shareholders, its governance is carried out by a board of directors. The duty of directors is to certify that shareholders value profits. The question arose whether these companies were influenced by the nature of the board of directors or the nature of the directors of the companies in terms of profits and losses. This research is a solution to the problem of the nature of the board or directors' characteristics having a direct impact on financial performance. If a company continues to lose, it is not good for the company. As a result, customers reduce the consumption of the brand's goods and services, which leads to a decrease in the superiority of the goods and services produced by the company. They are losing trust in these brands. And if companies continue to suffer losses, employees will not be able to pay their salaries on time. So there will be a mess of employees. These problems have arisen. The economy is also experiencing an unfavorable situation. It is therefore important for institutions to avoid losses. According to agency theory, future directors will not act for the good of bondholders. Companies therefore have to face various difficulties. This leads to disagreements between incumbents and management. This also creates an incentive for the company to damage its reputation. It is important to study how this affects the characteristics of the director to maximize the return margin of a company. Furthermore, the basic explanation of corporate governance emphasizes the responsibilities and duties of the board of directors to achieve the company's objectives. The main goal of any business is to achieve extreme returns. It is important to know how the board contributes to this. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a personalized essay. Additionally, the number of research projects in Sri Lanka are correlated with board characteristics and financial performance. is weak. It is planned to do this research as a solution. Furthermore, there is still no clear relationship between board characteristics and financial performance..