IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN

Feryal Zafar; Shaheera Munir; Muhammad Saqib Khan

doi:10.53664/JSRD/02-01-2021-02-16-28

Authors

Feryal Zafar Master in Business Administration Scholar, Bahria University, Islamabad
Shaheera Munir Master in Business Administration Scholar, Bahria University, Islamabad, Pakistan
Muhammad Saqib Khan Master in Business Administration Scholar, Bahria University, Islamabad, Pakistan

DOI:

https://doi.org/10.53664/JSRD/02-01-2021-02-16-28

Abstract

The study attempts to figure out the relationship between the performance of the firms and corporate governance in Pakistan. Governance mechanisms used in this study are CEO duality, Independence of Board, Size of Board, and Ownership Concentration. While, the ROA and ROE have been used as dependent variables to measure the performance of firms. Using regression analysis technique on 10 listed firms trading over four years from 2014-2017, the results have been derived. The data regarding all the variables have been collected from all the companies’ annual reports. The discoveries of the study direct that fundamentals of corporate governance such as the Size of the Board, Ownership, and Duality Concentration of CEO have negative effects on performance of organization, as measured by ROA and ROE. While Board independence positively affects the performance of firms. The results are thus significant and provide valuable information for the decision makers about the research issues under consideration.