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Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

Author

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  • Aon Waqas Awan
  • Javed Ahmed Jamali

Abstract

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

Suggested Citation

  • Aon Waqas Awan & Javed Ahmed Jamali, 2016. "Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 401-411, December.
    • Handle: RePEc:mth:ber888:v:6:y:2016:i:2:p:401-411
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    References listed on IDEAS

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    Cited by:

    1. Quang Linh Huynh & Mohammad Enamul Hoque & Perengki Susanto & Waqas Ahmad Watto & Maryam Ashraf, 2022. "Does Financial Leverage Mediates Corporate Governance and Firm Performance?," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    2. Akbar, Muhammad & Hussain, Shahzad & Ahmad, Tanveer & Hassan, Shoib, 2020. "Corporate Governance and Firm Performance in Pakistan: Dynamic Panel Estimation," CAFE Working Papers 6, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.

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    More about this item

    Keywords

    Corporate Governance; Profit Margin; Return on Equity; Board Size; Audit Committee;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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