Abstract:
The study attempts to investigate the relationship of corporate ownership, size of the firm and
investment opportunities with corporate governance in textile sector of Pakistan with a data of 10
firms listed in Karachi stock exchange. The firms have been selected on the grounds of coverage
of market capitalization of overall textile sector. The data collected is for the period of 2008 to
2012. A measure to calculate corporate governance, unique to Pakistani context has been
applied. A regression model is used to analyze the data. The statistical analysis has shown a bit
unconventional results as the ownership concentration has been found to be positively impacting
the corporate governance practices. Investment opportunities and size of the firm have been
experienced to be mildly positively influencing the corporate governance practices. A correlation
model is also applied to check the relationship between corporate governance and corporate
valuation. Results have revealed that corporate governance and corporate valuation are positively
and fairly correlated.
