CORPORATE GOVERNANCE A SOLUTION FOR SUCCESSFUL BUSINESS FINANCIAL PERFORMANCE

Abstract

Purpose The main purpose ofthe study is to analyse the impact of corporate governance on the financial performance of cement industry in Pakistan, It has been identified that there are various factors of like effectiveness of board, CEO duality, and independence of board. corporate governance board’s ownership, board’s education and experience and board sizes that effects the firm’s financial petfonnance. Methodology and Design E-Views software is used for data analysis and for that purpose all listed cement companies in the KSE 100 index have been considered. The data for these seven companies have been collected from 2010 to 2020. Findings These findings show that these corporate governance factors have been identified as effectiveness of board. CEO duality, and independence of board. These have been observed with in Pakistan. The factor positive impact on the financial performance of cement industry of corporate governance always helps the management of an organisation in order to ensure the stakes ofshareholders in terms of return on their investments. Limitations This research is limited much of corporate governance, therefore, deals with the limits on manager’s decision and accountability. Recommendations Companies should focus more in Good corporate governance that will repose on policies requiring the company to stay accommodating with local laws and regulations and also Pakistani cement industries should also focus on firm’s board ownership and board’s size that will directly impact to the firm's financial performance.