Corporate Governance and Firm Performance in Pakistan: The Case of Karachi Stock Exchange (KSE)-30

Qaiser Rafique Yasser, Harry Anak Entebang, Shazali Abu Mansor
2015 Social Science Research Network  
This paper examine the relationship between four important corporate governance mechanisms (board size, board composition, CEO/chairman duality and audit committee) and two firm performance measures (return on equity, ROE, and profit margin, PM), for a sample of 30 Pakistani listed firms between 2008 and 2009. The results provide evidence of a positive significant relationship between ROE and PM and three corporate governance mechanisms (board size, board composition and audit committee). The
more » ... t committee). The implication of this is that, the board size should be limited to a sizeable limit and board must be a right mixture of executive and non-executive directors. The study, however, could not provide a significant relationship between the two performance measures (ROE and PM) and CEO/Chairman duality. These results are consistent with prior empirical studies.
doi:10.2139/ssrn.2551636 fatcat:cc6h3ou6yngndkrgjznmyuygbu