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| Corporate Governance and Firm Performance of Non-Financial Firms in Pakistan |
Sajad Ali, Dr. Jangraiz Khan Arshadullah Jadoon, Muhammad Riaz, Abid Khan
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Abstract:
This research study examines the effect of corporate governance (board advisory group) on financial performance (ROA) of non-financial firm listed in Pakistan Stock Exchange. Out of 399 firms listed in PSX, a sample of196 firms were selected randomly by using formula of Krejcie & Morgan (1970) covering period of 2002- 2018 from the annual reports published firms or from published by State Bank of Pakistan. Pooled regression model were selected from the diagnostic tests. Results of the research shows that corporate Governance has a significant effect on the on financial performance of non-financial firms. The findings recommends that The institutional shareholdings have significant effect on ROA, the firm should increase their institutions as this will increase their profit and value and the firm should adopt debt financing who have less shareholders as this will give them tax yield and will increase their profit but the firm who are interested in equity financing will try to lower the debt level as this will negative effects on the firm value.Furthermoret he managers should be involved as shareholders as this will increase their hold and they will increase the firm profit.
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