Abstract:
This thesis aims to understand and evaluate the impact of corporate governance on the capital structure and dividend policy of the non-financial firms listed in Pakistan Stock Exchange for the year period 2010-2015. The sample size of this research consists of secondary data taken from SECP's annual report of 231 companies. We used correlation and regression models to study the impact of corporate governance on the capital structure and dividend policy of the firms. The variables of corporate governance i.e. the independent variables include the board size, board composition, CEO duality and ownership concentration The dependent variables include the debt ratio and dividend yield. The size of firm and the return on assets are the indicators of profitability and thus, are used as the control variables for the research. The analysis of the study shows that, despite the fact that companies in Pakistan have not developed the structure of corporate governance, its impact on the capital structure and dividend policy of the firms is significant. The research can contribute to the shareholders and future researchers and provide help in understanding the variables of corporate governance that influence the debt ratio and dividend policy of the firms.
