Abstract : This study investigates the impact of corporate governance on corporate performance for a sample of Saudi listed companies. In contrast to prior literature, performance is defined as the efficiency of value added (VA) rather than in financial terms. Further, the analysis examines the association between corporate governance and efficiency of VA and each of the firm’s physical capital (PC) and intellectual capital (IC), respectively. The study addresses three dependent variables; the efficiency of value added by a firm’s total resource base (TVAE), efficiency of value added by a firm’s PC—resources (TVAPC) and efficiency of value added by a firm’s IC—resources (TVAIC). The Value Added Intellectual Coefficient (VAIC) methodology forms the measurement basis for the three dependent variables in the current study. Statistical methods (correlation and regression) will be used to examine the relation between the variables of the study. Theresults indicatedthat Saudi business environment is interested of good corporate governancepractices, as well asthe presence ofsignificant positive associationbetween each of thequalityof audit committeesand the independence ofboard members andthe efficiency ofthe value added. So, we recommended Saudi Capital Market Authority to prepare a list of companies with good governance practices. The results of study could provide useful implications for corporate governance authorities in Saudi market to develop more effective governance rules. The study extends the literature related to the association between corporate governance and corporate performance in Saudi business environment by using the concept of value added as a measure for corporate performance