Analysis of the Relationship Between Corporate Governance Mechanisms and Performance of A Firm: A Study on Pakistan’s Chemical Industry | Zendy

Abid Rasheed | Zendy; Ahmed Arman | Zendy; Ch.Abdullah Imran Sahi | Zendy; Ghulam Mustafa | Zendy; Bilal Sarwar | Zendy

Open Access

Analysis of the Relationship Between Corporate Governance Mechanisms and Performance of A Firm: A Study on Pakistan’s Chemical Industry

Author(s) -

Abid Rasheed,

Ahmed Arman,

Ch.Abdullah Imran Sahi,

Ghulam Mustafa,

Bilal Sarwar

Publication year - 2020

Publication title -

journal of research in administrative sciences

Language(s) - English

Resource type - Journals

ISSN - 2664-2433

DOI - 10.47609/jras2020v9i1p4

Subject(s) - corporate governance , accounting , stock exchange , profit margin , business , audit , audit committee , sample (material) , profit (economics) , positive relationship , economics , finance , chemistry , psychology , social psychology , chromatography , microeconomics

Corporate governance is one of the major topics under discussion from the last two decades. The knowledge is increasing with every passing day as new scandal keeps appearing in the financial world and so are the weaknesses in the CG mechanisms. This study aims to find a relationship between two major elements of CG mechanisms including (board size & composition and audit committee) and firm performance (ROE and profit margin). The sample size consists of 33 chemical companies listed on the Karachi stock exchange from 2005 to 2015. The results show a positive relationship between the variables tested in the study. The results also confirm that the theoretical notion of firms with good financial results and performance are those with better corporate governance practices.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research