"IMPACT OF CORPORATE GOVERNANCE ON THE FINANCIAL PERFORMANCE OF THE COMPANY

Abstract

The aim of this study is to inspect that how Corporate Governance impacts the performance of Public Sector organizations in Pakistan particularly in PAKISTAN INTERNATIONAL AIRLINES (PIA).Corporate Governance allude to a system in which companies are been controlled. “The principles of a good Corporate Governance include accountability, transparency, responsibility, and fairness.” (Aziz, 2019). PIA has experienced hard criticism and financial losses due to bad Corporate Governance, Corruption, and inefficiency. This study has based on the secondary data analysis of the previous last five years annual reports of international airlines corporations limited PIACL for a period from 2017 up to 2021 and it got disclose that corporation has earned reputational damage to organization and there are several reasons behind that for instance: deteriorating performance, mismanagement, conflicts between the management and union, overstaffing, inadequate numbers of aircrafts in fleet, discriminatory human policies, staff involvement in smuggling, unsound practices of accountability and transparency. Although PIA has adopted the Corporate Governance from 2002 but still its financial performance is not good due to not implementing the good practices ofCORPORATE GOVERNANCE.