THE IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: A CASE OF NON-FINANCIAL FIRMS IN PAKISTAN

Abstract

This study aimed to understand the impact of corporate governance factors on firm performance. Specifically, a case of non –financial firms was studied, and data were collected from 2015 to 2019. The source for data collection was balance sheet analysis published by the State Bank of Pakistan as well as the Karachi Stock Exchange website. In the existing study, we use the random effects model. The main finding of this research study reveals that managerial ownership, institutional ownership, as well as total assets significantly impact firm performance. Managerial ownership is reported to have a negative relationship with firm performance. Institutional ownership and total assets show a positive relationship with firm performance. The relationship between board independence and ROE is insignificant. The connection between board size and ROE is insignificant. The connection between CEO duality and ROE is insignificant. The relationship between audit committee size and ROE is insignificant. The relationship between board meeting and ROE is insignificant. Based on the results, this study presents important suggestions and recommendations for managers, policymakers, and other stakeholders.