THE IMPACT OF CORPORATE GOVERNANCE ON THE PERFORMANCE OF TEXTILE SCTOR OF PAKISTAN (KARACHI)

Abstract

PURPOSE The purpose of this research is to study the impact of corporate governance on the performance of Textile sector of Pakistan. METHODOLOGY The study investigate the association between the corporate Governance and performance of the textile companies which is currently being practiced in Pakistan as were listed in stock exchange (KSE ) from 2008 to 2013. FINDINGS The study used a sample size of 19 listed textile companies listed in KSE. Descriptive, Pearson Correlation and Multiple Regression Technique were used for analysis of data. Regression equations modeling has applied to determine the relation in between the firm performance and corporate governance variables. The outcomes shows that the corporate governance was not very well develop in Pakistani textile companies but have strong impact on the firm performance. In determining the relationship of corporate governance with performance of the firm the researcher established that number of directors in board has a substantial relationship with the firm performance and has a positive and significant relation with ROA and Net Income of companies. Whereas there is no significant but have positive relationship with ROE. Similarly CEO Duality have positive impact but have no significant relation with ROA. It has negative impact on ROE and have positive impact on Net income.