IMPACT OF CORPORATE GOVERNACE ON FIRM PEFORMANCE: AN EVIDENCE FROM TEXTILE SECTOR IN PAKISTAN

Abstract

Purpose The aim ofthis study was to investigate the effect ofcorporate governance on firm performance of KSE-100 index textile companies in Pakistan. Methodology and Design The study was quantitative in nature and use the longitudinal research design. The data was collected for the period of 2017 to 2021 from the annual report of 100 index listed textile companies in Pakistan. The panel data regression model was run in three phases pulled affect random effect and fixed effect model both of descriptive and regression model was run to test the research hypothesis. Findings Panel data results indicates that concentration ownership, board independence and board have negative and significant effect on return on assets, board size and ownership concentration have positive effect on return on asset. In other words, concentration ownership has insignificant effect on return on equity, while board size, board independence, board diversity, ownership concentration has significant effect on return on assets. Further results indicates that concentration ownership, board independence, board diversity, ownership concentration have significant effect on earnings per share while board size has insignificant effect on earnings per share. Limitation and recommendation The research was limited on Pakistan, which is a developing nation, future research could be limited on direct effect, future research could conduct on developed nations. The research was be conduct on indirect mediating or moderating effect. Lastly, the research was on longitudinal on qualitative and quantitative research research design, future research could be conduct approach mix