Corporate governance and firm performance in an emerging market - An exploratory analysis of Pakistan

Nishat, Mohammed; Shaheen, Rozina

doi:10.22495/cocv4i2c1p6

Cited by 6 publications

(4 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The sample size of the present study is analogous to the earlier studies such as Udin et al (2017), Akbar et al (2016), Manzaneque et al (2016), Shahwan (2015), Wahba (2015), Kamel and Shahwan (2014), Tariq and Abbas (2013), Javid and Iqbal (2010), Javed and Iqbal (2007), and Shaheen and Nishat (2005). The listed non-financial companies showed a growth of 13.57% in size and 9.26% in shareholders' equity during the year 2018.…”

Section: Methodsmentioning

confidence: 51%

Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging market

Khan,

Saleem,

Ud Din

et al. 2024

Humanit Soc Sci Commun

View full text Add to dashboard Cite

This study empirically investigates the linkage between boardroom independence and the financial performance of non-financial firms in an emerging market featured by family-controlled businesses and concentrated ownership. The relationship is tested in a sample of 152 non-financial firms listed on the Pakistan Stock Exchange over a period from 2003 to 2018. Firms’ financial performance is measured through return on assets (ROA), return on equity (ROE), market-to-book ratio (MBR), and Tobin’s Q (TQ), while boardroom independence is measured through the proportion of non-executive directors on the corporate board. Using the dynamic GMM approach to address the possibility of endogeneity, it was found that boardroom independence is significantly negatively related to the financial performance of the sample firms. This negative impact is due to the reason of close ties of outside independent directors (non-executive directors) with dominant shareholders and management in personal, financial, and social terms. A significant negative influence of the board size and CEO duality on firms’ financial performance was also observed. The present study will add to the existing literature on corporate governance and firm financial performance using firm-level manually collected data. Further, our findings will also help the policymakers by providing empirical insights for strengthening corporate governance mechanisms in emerging market economies, specifically in the context of Pakistan.

show abstract

Section: Methodsmentioning

confidence: 51%

Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging market

Khan,

Saleem,

Ud Din

et al. 2024

Humanit Soc Sci Commun

View full text Add to dashboard Cite

show abstract

“…The main objective of corporate governance in Pakistan is to raising fund from the external capital market. (Nishat & Shaheen, 2007) study the rating of corporate governance base on annual report they find proof that good governance will lead to raise the value of firm. (Javid & Iqbal, 2010) use panel data and concluded that there is positive relationship among the firm level of corporate governance and performance.…”

Section: Corporate Governance In Pakistanmentioning

confidence: 99%

Corporate Governance, Risk Management, and Bank Performance: Does Type of Ownership Matter?

Kakar¹,

Ali²,

Bilal³

et al. 2021

JFRM

View full text Add to dashboard Cite

This research explains the correlation between corporate governance, risk management, bank performance, and ownership structure. The research has used a set of independent variables related to revelation and precision. The data from 39 banks working in Pakistan have been used for the time period of 2010 to 2015. Two variables are used for risk management including VAR (Value At Risk) and CAR (Capital Adequacy Ratio). Family ownership, managerial ownership, and ownership concentration are used as instrumental variables for ownership structure. Board independence, the board size, CEO, and audit committee are used as proxy variables for corporate governance, whereas, dummy variables are used for bank performance. The results indicate that three types of bank ownerships are the same; therefore, they cannot affect VAR type of bank ownership and compare as a whole with risk management. The regression consequences display that family ownership has an unconstructive outcome on VAR and CAR that show a negative association between the variables. While managerial ownership and concentration ownership show a positive association between VAR and CAR. The results indicate that board size and audit committee has a negative effect on VAR and CAR that means there is a negative relationship between the variables, whereas board size and CEO have a positive relationship with VAR and CAR. Firm size, firm profitability, and growth opportunities represent a variety of bank

show abstract

“…Akmal (2007) studied a long-haul association between equity returns and the rate of inflation; he has also concluded that the rate of inflation provided a hedging to the stock returns in a long-term relationship. Nishat and Shaheen (2005) examined a long-haul affiliation between equity returns of the KSE 100 index and economic indicators: for instance, manufacturing productivity, economic growth, and rate of inflation. They covered annual data from 1973 to 2004 and employed a vector error correction model, a variance decomposition method, and a multivariate cointegration econometrics model to examine the series.…”

Section: Literature: the Kse 100 Indexmentioning

confidence: 99%

Multivariate Granger causality between macro variables and KSE 100 index: evidence from Johansen cointegration and Toda & Yamamoto causality

Ahmed

Vveinhardt

Štreimikienė

et al. 2017

Economic Research-Ekonomska Istraživanja

View full text Add to dashboard Cite

The pursue of this article is to scrutinise the long-haul relationship between stock returns of the KSE 100 index and monetary indicators such as rate of exchange, inflation, and interest rates. Month-to-month data from the KSE 100 index and monetary variables were extracted for the period January 1992 to November 2015. We transformed the data series into a stationary form by employing the augmented Dickey-Fuller method. The Johansen cointegration approach reinforces the long-haul association between equity prices and monetary indicators, for instance the rate of exchange, inflation, and interest rates. Results of the Granger and Toda and Yamamoto causalities demonstrate the unidirectional causal relationship between interest rate and KSE 100 index; the one-way causation existed from interest rate to equity returns for the KSE100 index. The analysis of the impulse response function concludes that the changes in the KSE 100 index happened due to its own shocks. However, changes in exchange and inflation rates were experienced because of the interest rate. The outcome of variance decomposition demonstrated that most of the changes in the KSE 100 index are because of its own shocks. Thus, it is concluded that the predictability of the equity prices for the KSE 100 heavily relied on exchange rate, inflation, and interest rate variations.

show abstract

Corporate governance and firm performance in an emerging market - An exploratory analysis of Pakistan

Cited by 6 publications

References 32 publications

Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging market

Nexus between boardroom independence and firm financial performance: evidence from South Asian emerging market

Corporate Governance, Risk Management, and Bank Performance: Does Type of Ownership Matter?

Multivariate Granger causality between macro variables and KSE 100 index: evidence from Johansen cointegration and Toda & Yamamoto causality

Contact Info

Product

Resources

About