EconPapers    
Economics at your fingertips  
 

Corporate Governance in Pakistan: An Empirical Study

Aamir Firoz Shamsi (), Rizwana Bashir () and Iqbal Ahmed Panhwar ()
Additional contact information
Aamir Firoz Shamsi: Bahria University
Rizwana Bashir: Bahria University
Iqbal Ahmed Panhwar: Bahria University

Transnational Corporations Review, 2013, vol. 5, issue 3, 46-59

Abstract: This research examines the impact of corporate governance on the performance of firms in Pakistan. Corporate governance revolves around the basic principles of fairness, transparency, and accountability. The term Corporate Governance is used to describe a process, which has been practiced for as long as there have been corporate entities. Corporate governance is critical to improving economic efficiency and growth. It serves as a deterrent to mismanagement and infuses discipline in the decision making process of boards of directors. A number of surveys of investors in Europe and the US show that investors eventually reduce their investments in a company that practices poor governance. This paper argues that, since the monitoring of the compliance of the financial aspect of the Code in Pakistan is being done by more than one institution, companies usually end up following it. The Securities and Exchange Commission of Pakistan has not introduced any proper institution to check companies¡¯ compliance with the non-financial aspect of the code, and there is no proper tool in place to gauge if the companies are really complying with it. Companies¡¯ compliance with the non-financial aspect of the code usually remains on paper only, and the Code of Corporate Governance has no direct effect on companies¡¯ performance.

Keywords: Corporate governance; corporate performance measurement; balanced scorecard (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://tnc-online.net/journal/html/?454.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oul:tncr09:v:5:y:2013:i:3:p:46-59

Access Statistics for this article

More articles in Transnational Corporations Review from Ottawa United Learning Academy 1568 Merivale Rd. Suite # 618, Ottawa, Ontario, Canada K2G 5Y7.
Bibliographic data for series maintained by Denny Liao () and Jen Ma ().

 
Page updated 2021-07-08
Handle: RePEc:oul:tncr09:v:5:y:2013:i:3:p:46-59