This empirical study examines the relationship between corporate governance and organizational performance (OP), measured using Tobin's Q (TQ) in the context of an emerging economy for which, as yet, only a handful of studies have been conducted. We employ a system generalized method of moments approach controlling for endogeneity and test it on a newly created dataset comprising 324 listed firms in Pakistan. We find that board size, number of board committees and ownership concentration are positively linked with high TQ ratio, whilst board independence and CEO duality display a negative relationship. In terms of moderating effects, we find that ownership concentration negatively moderates the relationship between board independence and OP, as well as that of CEO duality and OP. The relationship between the number of board committees and OP is positively moderated by ownership concentration. Our findings contribute towards a better articulation and application of a more concrete measure of OP − that of the TQ ratio − whilst, at the same time, testing the board composition-performance relationship in the context of an upcoming and increasingly important emerging market. Wider applicability of results and policy implications are discussed.

In today's complex and fast-moving business world, corporate governance practices are crucial for navigating change and managing new risks. Research continue to show the positive impact that governance mechanisms can have on business competitiveness. This thought-provoking book offers valuable insights on the link between governance and organizational performance, while it highlights best practices that can easily be implemented by Boards." -H.E. Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry, Dubai, United Arab Emirates "This methodologically sophisticated and controversial study disputes the correlation between good corporate governance and financial performance in a pioneering study of Pakistan. Tick-box compliance cultures turn out to have little value compared to long-term strategies to create value." -Geoffrey Jones, Isidor Straus Professor, Harvard Business School, Boston, USA"Corporate Governance and Organizational Performance -The impact of Board Structure is a timely piece of research conducted with an extensive and in-depth analysis of data base of listed companies in Pakistan. The research is also of critical contemporary relevance to fellow emerging economies around the world that share similar political, economic, social, technological, and legal setups with Pakistan. Several of these economies are vying to be a major player in their respective regions. Lesson this research imparts is that companies that diligently apply the principles of corporate governance in all fairness and transparency have the potential to outperform rivals. The study highlights how a Board is structured and conducts, influences the market value of companies. This in turn inspires investors' lending and investing decisions. Policy recommendations of the study are that a corporate sector comprising of companies that implement the code of conduct of good governance, both, in letter and spirit could be the future of Pakistan vis-à-vis emerging economies."

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