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Corporate Governance in the Financial Sector of Pakistan

Author

Listed:
  • Faiza A. Chaudary

    (LUMS)

  • Marc Goergen
  • Shoeb I. Syed

Abstract

La Porta et al. (1998) assign Pakistan, a common-law country, the maximum score of 5 for their anti-director rights index. Pakistan should therefore be a country with good investor protection attracting large amounts of investments. However, the reality could not be more different. Pakistan has been lagging behind other, comparable Asian economies in terms of incoming foreign direct investment as well as GDP-per-capita growth. This paper focuses on the Pakistani banking sector. The paper analyses the banks ownership and control structure. It finds that Pakistan has its own idiosyncrasies, which are difficult to associate with La Porta et al.s characterisation of corporate governance and investor protection in common-law countries. The paper also reviews the recent reforms of corporate governance.

Suggested Citation

  • Faiza A. Chaudary & Marc Goergen & Shoeb I. Syed, 2006. "Corporate Governance in the Financial Sector of Pakistan," Governance Working Papers 22253, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:govern:22253
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    File URL: http://www.eaber.org/node/22253
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    References listed on IDEAS

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    Cited by:

    1. Emmanuel Chuke Nwude & Musa Sani Zakirai & Comfort Amaka Nwude, 2023. "Ownership Structure and Bank Performance in Emerging Market Economy: Evidence From Nigerian Listed Deposit Money Banks," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. Malik, Saif Ullah, 2012. "Relationship between Corporate Governance Score and Stock Prices: Evidence from KSE- 30 Index Companies," MPRA Paper 44475, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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