Abstract:
Different stakeholders have different views and goals and it creates a conflict of interest between them. Some big corporation scandals, such as Enron, WorldCom, Tyco, etc. have brought questions about the effectiveness of corporate governance. The research about the banking sector in Pakistan about the effective corporate governance has not been conducted yet. That’s why, this research discusses the corporate governance of the banking sector in Pakistan. We have taken the performance of the banking sector, Return of Assets (ROA), and Return on Equity (ROE) as dependent variables, and independent variables consist of Debt-to-Equity Ratio (DE), Board Size (BS), Foreign Ownership (FO), CEO Duality (CEO), Firm Age (FA), and Firm Size (FS).