Abstract:
This study aims to assess the impact of corporate governance practices on financial performance of textile sector of Pakistan. This study has considered managerial ownership structure, institutional ownership, board structure, non-executive directors, CEO duality, and ownership concentration as independent variables. Leverage is considered as a control variable. The financial performance (ROA, ROE, and EPS) of textile firms is used as the dependent variable. The annual financial statements of 1350 firms are used for the period 2015 – 2020. Sample size of 1350 firms is finalized to represent the entire population. The results of the study report that managerial ownership structure, board structure, and ownership concentration have significant impact on financial performance (ROA, ROE, and EPS). Meanwhile, institutional ownership, non-executive directors, and CEO duality have insignificant impact on financial performance (ROA, ROE, EPS) in textile sector of Pakistan.
