Yoke of Corporate Governance and Firm Performance: A Study of Listed Firms in Pakistan

Ali, Amjad; Alim, Wajid; Ahmad, Jawad; Nisar, Sabahat

doi:10.18843/ijcms/v13i1/02

Cited by 21 publications

(17 citation statements)

References 40 publications

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“…The study recommended to have a strong corporate governance mechanism in place among the Nigerian banks. The performance of the firms gets heavily influenced by the corporate governance measures, according to Ali et al, 2022. In their study, the authors analyzed the quantitative data and found that firm performance and the overall extent of the directors, board independence, and average education of the board members have a positive association. Further, the results established that board size and member's education significantly affect the performance of the firm.…”

Section: Experience From the Rest Of The Developing Countriesmentioning

confidence: 99%

Application of Corporate Governance Measures in Indian SMEs: A Way Forward

Dhondge

2023

IJCMS

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Purpose:The current review article provides a bird's eye-view on corporate governance measures and its importance for the small and medium enterprises (SMEs) in India. In spite of its huge contribution to economic growth and employment generation, the role played by SMEs is often unrewarded and, in cases, remains unacknowledged. Although corporate governance measures have been introduced before 30 years, that is, after Cadbury report, its 100% compliance among the large-sized corporations in India remains opaque. Hence, the current review work is a first-of-its-kind attempt to provide more insights about this unexplored domain, with regard to Indian SMEs. Indian SMEs have huge potentials that are yet to be untapped and it is possible to leverage the workforce, resources, raw materials and government support through proper channelization. Methodology: The current review follows the exploratory research approach since the studies pertaining to corporate governance in Indian SMEs are negligible. To fulfill this research gap, the study attempts at covering the most important aspects of the domain. Findings: The review highlighted the importance of corporate governance and emphasized the need for its implementation among the Indian SMEs so that it can compete with its international counterparts. The review quoted examples of implementing corporate governance among the SMEs in various developing nations and also provided policy-level recommendations. Implications: To gain sufficient level of trust and confidence upon the SMEs' financial performance by the investors, the current review suggested the possible measures to be undertaken by the government and the entrepreneurs since the contribution should be collaborative in true spirit. Future empirical studies should be conducted in this domain so as to provide suggestions for the policy-makers, entrepreneurs, investors, and so on. Originality: The current review article is a holistic paper that covered the aspects of corporate governance and detailed about the need for it case of Indian SMEs. Only a handful of studies focused on corporate governance in Indian SMEs so far which lacked to provide the way forward and the need for training, awareness, etc.,

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Section: Experience From the Rest Of The Developing Countriesmentioning

confidence: 99%

Application of Corporate Governance Measures in Indian SMEs: A Way Forward

Dhondge

2023

IJCMS

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“…This study is based on an agency theory for its theoretical background. Based on the fact that board meeting is an important variable of board attributes, we adopt agency theory in understanding the relationship between board attributes and firm performance as it is the theory that researchers mostly adopt in the financial and economic sector as a theoretical foundation (Hanh et al, 2018;Liang et al, 2013;Ali et al, 2022;Sobhan, 2021). Agency theory existed on the principle of the basic relationship of principals and agents or shareholders as principals and board members as agents too.…”

Section: Agency Theorymentioning

confidence: 99%

“…All the corporate governance theories suggest that the involvement and appointment of directors as both the executive and non-executive directors on the board is necessary for an effective governance structure (Arora & Sharma, 2016). So that a company's performance can be enhanced, corporate governance is required to reduce disagreements among the stakeholders, particularly shareholders and executives (Ali et al, 2022). A board of directors' main functions include advising, evaluating top management's decisions, monitoring organizational efforts, and contracting.…”

Section: Introductionmentioning

confidence: 99%

Board Meeting Frequency and Performance of Public Sector Banks in India

2022

IJFB

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This paper aims to analyze the effect of the frequency of board meetings on the performance of public sector banks in India. According to agency theory, frequent board meetings may lead to more concentrated monitoring, lowers the agency cost, contributes to more exchange of ideas among the board of directors, and assist them to be more equipped with the information, which ensures better financial performance. This paper investigates this assumption of agency theory on the performance of public sector banks in India. The number of committees, frequency of board meetings, and audit committee meetings are a proxy of corporate governance mechanisms. Return on Assets (ROA) is a proxy of financial performance. The duration of the study is 2015-2019, and secondary data is used. Panel regression is employed to analyze the impact of variables of corporate governance mechanisms on the performance of public sector banks. Our results find no significant impact of any governance variables used in the study on the ROA of the banks. The study makes an original contribution by providing a comprehensive study related to the process and activity of the board and its impact on the performance of banks. The findings of this paper will help examine the board's process and lead to improvement in concern.

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“…An essential and integral part of the Pakistani economy is family businesses, as about 80 percent of all companies listed on the Karachi Stock Exchange are either directly or indirectly connected to a significant business family. The Securities and Exchange Commission of Pakistan 3 (Ali et al, 2022;Farooq et al, 2021) and IC moderation is not tested in case of familyowned firms. Additionally, FP measured through one market-based proxy, namely Tobin's Q, along with the accounting-based proxies, namely, ROE and ROA has added much value in the current study for family-owned firm's stakeholders.…”

Section: Introductionmentioning

confidence: 99%

Dynamics of Intellectual Capital, Corporate Governance, and Firm Performance in Family-Owned Companies in Pakistan

Shoaib

Ahmad

Abdul

2023

NIJBM

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The study aims to examine the corporate governance effect on the performance of family-owned cement companies in Pakistan for the period 2016 to 2021 using random and fixed effect panel regression based on the Hausman test considering intellectual capital as a moderator. The results indicate a positive effect of audit size and top 20 shareholders while a negative of insider shareholding and board independence on Tobin’s Q, ROE, and ROA. Additionally, for Tobin’s Q, institutional shareholding and CEO duality, a positive effect while negative of board size is found. While the negative effect of institutional shareholdings and CEO duality and the positive of board size is found in the case of ROE, ROA and intellectual capital moderation is found for all performance measures. The findings are consistent with stewardship and agency theory. The empirical outcomes emphasize the importance of intellectual capital for policymakers and regulators considering it rewarding activity for shareholder wealth maximization.

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Yoke of Corporate Governance and Firm Performance: A Study of Listed Firms in Pakistan

Cited by 21 publications

References 40 publications

Application of Corporate Governance Measures in Indian SMEs: A Way Forward

Application of Corporate Governance Measures in Indian SMEs: A Way Forward

Board Meeting Frequency and Performance of Public Sector Banks in India

Dynamics of Intellectual Capital, Corporate Governance, and Firm Performance in Family-Owned Companies in Pakistan

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