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Impact of Corporate Governance on Performance of Firms: A Case Study of Cement Industry in Pakistan

Author

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  • Cheema, Khaliq Ur Rehman
  • Din, Muhammad Sadat

Abstract

This research paper throws light on the relationship between the corporate governance and Firm financial performance in Cement industry of Pakistan. This study gives attention to three variables which include board Size, Family controlled firms, and CEO duality. Firm’s performance is measured through return on equity, return on assets, and earnings per share, debt to equity and current ratio. Positive relationship between corporate governance and firm performance has been observed.

Suggested Citation

  • Cheema, Khaliq Ur Rehman & Din, Muhammad Sadat, 2013. "Impact of Corporate Governance on Performance of Firms: A Case Study of Cement Industry in Pakistan," MPRA Paper 53202, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:53202
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    File URL: https://mpra.ub.uni-muenchen.de/53202/1/MPRA_paper_53202.pdf
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    References listed on IDEAS

    as
    1. Daily, Catherine M. & Dalton, Dan R., 1992. "The relationship between governance structure and corporate performance in entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 7(5), pages 375-386, September.
    2. Imran Habib Ahmad, 2009. "Climate Policy Integration: Towards Operationalization," Working Papers 73, United Nations, Department of Economics and Social Affairs.
    3. Catherine M. Daily & Dan R. Dalton, 1993. "Board of Directors Leadership and Structure: Control and Performance Implications," Entrepreneurship Theory and Practice, , vol. 17(3), pages 65-81, April.
    4. K. J. Martijn Cremers & Vinay B. Nair, 2005. "Governance Mechanisms and Equity Prices," Journal of Finance, American Finance Association, vol. 60(6), pages 2859-2894, December.
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    Cited by:

    1. Jihai Lu & Sohail Ahmad Javeed & Rashid Latief & Tao Jiang & Tze San Ong, 2021. "The Moderating Role of Corporate Social Responsibility in the Association of Internal Corporate Governance and Profitability; Evidence from Pakistan," IJERPH, MDPI, vol. 18(11), pages 1-22, May.
    2. Shahid, Muhammad Sadiq & Abbas, Muhammad, 2019. "Does corporate governance play any role in investor confidence, corporate investment decisions relationship? Evidence from Pakistan and India," Journal of Economics and Business, Elsevier, vol. 105(C).
    3. Etienne Ndemezo & Charles Kayitana, 2018. "Corporate Governance, Corporate Entrepreneurship and Firm Performance: Evidence from the Rwandese Manufacturing Industry," Indian Journal of Corporate Governance, , vol. 11(2), pages 103-121, December.

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    More about this item

    Keywords

    corporate governance; firm financial performance; ROA; ROE; EPS; current ratio; debt to equity; board independence; CEO duality and audit committee independence;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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