Abstract:
This research investigates the relationship between corporate governance practices and firm
performance in Pakistan, examining the moderating effect of capital structure. Using panel data
from the Pakistan Stock Exchange, we employ regression analysis to test our hypotheses derived
from agency theory, resource dependence theory, and stewardship theory. We learned that
Independent Directors could affect how well a company does by analyzing data in different ways.
We hypothesize that firms with stronger corporate governance (CG) practices, as evidenced by
board size and more independent directors, will outperform those with weaker CG. Strong
corporate governance directly impacts firm performance, with capital structure significantly
moderating this relationship
