Corporate Governance Leadership Structure Impact on Firm Performance: A Panel Data Analysis
Title
Corporate Governance Leadership Structure Impact on Firm Performance: A Panel Data Analysis
Authors
Nadia Hanif | Rehana Naheed
Keywords
Pakistan | Karachi
Publication Details
Vol:4; No:3;Sep-18 | ISSN: 2455-3921
Abstract
Corporate governance practices are allied with structures and processes by which members are concerned with the overall well being of the corporation and take hold of gauges to shield the interests and benefits of the stakeholders which leads to improvement of market performance of a firm. This study investigated the relationship between a firm’s corporate governance structure and its impact on firm performance. Panel data regression model was applied to analyze publically available data of 102 firms listed in Karachi stock exchange covering a period of four years 2009-2012. The results showed that there is a significant relationship between the corporate governance structure and performance calculated as return on equity, return on assets and Tobin’s Q ratio. Negative strong relationship is evident between CEO duality and firm performance. The CEO compensation is significantly and positively associated affects the performance of the firm. This study is important for the firms as it gives insights about which composition of board can be effective for successful performance of manufacturing firms in the context of Pakistan.
Correspondence
Nadia Hanif, Ph.D (Scholar) in School of Business Management, University of International Business and Economics, Beijing, China
