Yoke of Corporate Governance and Firm Performance: A Study of Listed Firms in Pakistan

Amjad Ali, Wajid Alim, Jawad Ahmed and Sabahat Nisar

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this exploration is to show the relationships between corporate governance tools (board size, board independence, CEO status, Board Education, and Established Years of the firm) and firm performance which is determined by the return on asset (ROA). Quantitative data are used to discover the association between the variables. The top 75 companies registered on the Pakistan Stock Exchange involving the period from 2010 to 2019 are taken as a sample. The research found that there is a connection between the performance of the firm with the overall extent of directors, board independence, and average education of board representatives. Insignificant results came for CEO duality and established years of the firm. The result predicted that an increase in total board members and average education of board members will increase firm performance (ROA), whereas a reduction in board independence will reduce firm performance (ROA) which explains the importance of corporate governance for the success of firm performance. Unlike the previous studies, this study tried to find the long-term influence of corporate governance on firm performance by analyzing five different variables for the listed firms in Pakistan. The study provides the importance of corporate governance tools and their effectiveness for the success of organizations, especially in Pakistan.

Keywords: Board education; board independence; the board size; CEO duality; corporate governance; firm performance; Pakistan; return on asset (search for similar items in EconPapers)
JEL-codes: G3 G30 (search for similar items in EconPapers)
Date: 2022-01
New Economics Papers: this item is included in nep-bec, nep-cfn and nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Journal Article: Yoke of corporate governance and firm performance: A study of listed firms in Pakistan (2022)
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