Abstract:
This research study explain the effects of board compositions the effectiveness of the firm performance,
especially with the context of Pakistani listed companies in KSE-100. A sample of 55 listed companies at
KSE-100 Index has randomly selected. Independent T-Test and group statistic have used for most
appropriate measures of the categorical variables of board composition including Dependent board and
independent board of directors. Results are not supported all hypothesis. There is no correlation has seen
between the greater representation of independent director and firm performance, Firm performance
depends on the firm’s internal policies and procedures that improve firm effectiveness and enhance firm
performance.
In this research, board composition and it impact on firm have measured through three performances,
ROE, ROA and Tobin’s Q. All hypotheses have rejected “Firm having independent board composition in
their board shows higher Tobin’s Q, ROA and ROE as compare to the firm having dependent board
which as a result shows higher firm’s performance.
So, it means that the listed companies of Pakistan at KSE-100 with greater representation of independent
board of directors have no create major impact on the firm performance.
