Open AccessCORPORATE GOVERNANCE AND FIRM PERFORMANCE: A STUDY ON MODERATING EFFECTS OF FIRM SIZE AND LEVERAGE ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FIRM PERFORMANCE IN BANKING SECTOR OF PAKISTAN
Author(s) -
Irfah Sohail,
Muhammad Saeed,
Zeenat Murtaza
Publication year - 2013
Publication title -
jinnah business review
Language(s) - English
Resource type - Journals
eISSN - 2307-7921
pISSN - 2070-0296
DOI - 10.53369/ncyl1958
Subject(s) - corporate governance , leverage (statistics) , business , moderation , return on assets , accounting , positive relationship , capital call , economics , finance , microeconomics , profitability index , psychology , social psychology , individual capital , machine learning , financial capital , computer science , profit (economics)
The main purpose of this study is to examine the impact of the corporate governance mechanism on firm performance. The variable employed in this study to measure firm performance, is return on assets. The empirical results indicate that firm performance is in positive and significant relation to corporate governance. On the other hand, the relationship between firm performance and corporate governance is moderated by size of the firm where as the leverage does not play its role in moderating the relationship between the variables of interest of this study.