Measuring the Validity of the Influential Factors for Good Corporate Governance
Naeem, M. Hunjra, A. I. and Khalid, B. (2012). Measuring the Validity of the Influential Factors for Good Corporate Governance. Bulletin of Business and Economics, 1(2), 13-22
10 Pages Posted: 21 Aug 2018
Date Written: 2012
This study was conducted and the model was planned for measuring the validity of the self-developed instrument of influential factors for good corporate governance. The objective of this study was to measure the determinants (i.e. Agency Problem, Equity Return, Management Holdings and Transparent Audit) of the good corporate governance in Pakistan. The population of this study was professionals of Pakistani corporations and stockbrokers of Islamabad Stock Exchange. The sample size was of 50 professionals and stock brokers. A self-developed questionnaire of five variables was constructed and factor analysis has been applied to measuring the validity of the instrument and its items. Mean score of the items, factor relative importance and percentage of variances of the variables has also been measured. Factor loading of all 20 items has a value greater than 0.4 and eigenvalues of every single variable is greater than 1.00 according to Kaiser’s criteria.
Keywords: Agency Problem, Equity Return, Management Holdings, Transparent Audit, Good Corporate Governance, Islamabad Stock Exchange
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