Effect of Corporate Governance on Firm Performance on Modarba Companies of Pakistan: A Case Study of Top 5 Companies

Abstract

In the decades or so there is many global financial crises that capture the attention of corporate governance in the whole world it is moral duty conform by law and showing ethics.so the country like Pakistan  a developing country can used as a tool for financial performance. The study shows the impact of corporate Governance on firm performance of modarba companies of Pakistan .we can take top 5 companies of the industry from the period of 2011 to 2015.we can take board size, CEO duality, board committees, and board independence, as independent variable and ROA and ROE as dependent variable.  

After the research of that we find that overall corporate governance variable have significant impact on firm performance. There is no relationship between board size and all dependent variable. Board independence has positive and strong relationship on all variable However, there is negative correlated between CEO duality and all dependent variable but significantly related to ROA