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

Journal of Economics and International Finance Vol. 3(8), pp. 482-491, August 2011

10 Pages Posted: 20 Jan 2015

See all articles by Qaiser Rafique Yasser

Qaiser Rafique Yasser

Universiti Malaysia Sarawak (UNIMAS)

Harry Anak Entebang

Universiti Malaysia Sarawak (UNIMAS)

Shazali Abu Mansor

Universiti Malaysia Sarawak

Date Written: January 18, 2015

Abstract

This paper examines 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 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.

Keywords: Corporate governance, firm performance, Pakistan

Suggested Citation

Yasser, Qaiser Rafique and Entebang, Harry Anak and Mansor, Shazali Abu, Corporate Governance and Firm Performance in Pakistan: The Case of Karachi Stock Exchange (KSE)-30 (January 18, 2015). Journal of Economics and International Finance Vol. 3(8), pp. 482-491, August 2011 . Available at SSRN: https://ssrn.com/abstract=2551636 or http://dx.doi.org/10.2139/ssrn.2551636

Qaiser Rafique Yasser (Contact Author)

Universiti Malaysia Sarawak (UNIMAS) ( email )

Kota Samarahan, Sarawak 94300
Malaysia

Harry Anak Entebang

Universiti Malaysia Sarawak (UNIMAS) ( email )

Kota Samarahan, Sarawak 94300
Malaysia

Shazali Abu Mansor

Universiti Malaysia Sarawak ( email )

Kota Samarahan, Sarawak 94300
Malaysia

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