Corporate Governance and Firm Performance: A Comparative Analysis between Listed Family and Listed Non-Family Firms, Evidence From Pakistani Manufacturing firms

Abstract

This study investigates the relationship between corporate governance and firm performance of listed family and non-family manufacturing firms in Pakistan. This study has considered managerial ownership structure, institutional ownership, board structure, non-executive directors, CEO duality and ownership concentration as independent variables, and firm performance (represented by return on assets, return on equity and earnings per share) as dependent variable. However, listed family and non-family manufacturing firms in Pakistan has been the sector chosen to investigate the relationship between variables mentioned above. Historical data regarding these variables have been collected from the period of 2014 – 2019 (6 years) through secondary sources of data (annual financial statements). However, statistical tests (such as descriptive statistics, correlation and regression) have been used primarily to identify the relationship between variables of this study. Results were drawn through statistical tests with the help of Stata software. Based on the findings, regression analysis has proved that managerial ownership structure, board structure and ownership concentration (independent variables) and firm performance (dependent variable) of listed family manufacturing firms in Pakistan. In addition, regression analysis has proved a significant relationship between 3 managerial ownership structure, board structure, CEO duality and ownership concentration (independent variables) and firm performance (dependent variable) of listed non-family manufacturing firms in Pakistan