The impact of corporate governance on firm performance: an empirical investigation for listed banks of Pakistan

Abstract

Purpose: Despite the fact that there is a lot of research has been done to evaluate the corporate governance effect on performance of the firm in Pakistan, Banking sector is far behind of this evaluation. The objective of this research paper is to scrutinize the association present between corporate governance indicators and corporations’ performance targeting the eight private banks of Pakistan. Design/Methodology/Approach: This paper is going to use the model of panel regression to analyze the data for the banks over the period 2008-2012 to determine the role played by measures of corporate governance and their impact on performance of the banks in emerging economy of Pakistan. Findings: Practices of corporate governance has significant impact on firm performance. Practical Implications: These findings provide the guidelines to the policy makers with a detailed insights which lead them to formulate effective policies regarding corporate governance measure. Because good corporate governance standards inspire the investors to invest and a reason of satisfaction for the other stakeholders regarding performance of the firm.