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Corporate Governance and Firm Performance: Automobile Assemblers Listed in Pakistan Stok Exchange (PSX)

The purpose of this study is to analyze the relationship between (PM and ROE) and the corporate governance mechanisms (BS, AC, CEOD, AGM) on automobile listed firms in Pakistan Stock Exchange. Data has been examined from 2010 to 2016. Multiple Regression analysis and t-test have been applied to examine the impact of corporate governance on firm performance. The results show that Board size, Audit Committee Size and number of meetings are much adequate to show positive impact on firm performance; whereas near to 70%, CEOs hold dual positions in automobile organizations; which gives a negative sign on firm performance. Regression analysis show a positive relationship with the dependent variables (PM, ROE) and also on independent variables (BS, AC, CEOD, AGM). Results also conclude a negative relationship between performance measures (PM and ROE) with corporate Governance Mechanisms (BS, AC, CEOD, AGM). The proposition of the results states that CEO dual status should not be used; single position should be held by an individual especially for the top level positions like CEO.

Publication
Journal:
Journal of Business Strategies
Year of Publication:
2017
Identifiers
Other Numbers:
78646863
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