Abstract
This paper aims to examine the relationship between corporate
governance practices and firm performance in Pakistan, as a result of
the adoption of Corporate Governance Codes 2012. Fifty firms are
selected randomly from manufacturing sector of Cement, Textile and
Sugar industries. Data for CG Codes is taken from 2012 to 2016. The
effectiveness of the board of directors is analyzed through the use
of different variables: CEO duality,CEO compensation, CEO
tenure, and board meetings. The financial performance is
measured by return on assets (ROA). Literature in relation to
corporate governance practices and firm performance reported mixed
results. The conceptual framework underpinning this study described
how the board structure and corporate reporting practices of firms in
Pakistani manufacturing sector effect firm performance. In this
framework Separate leadership refers to the separation of the position
of chairman and CEO, CEO tenure means the time of CEO office
holding, CEO compensation refers to the benefits and rewards of the
CEO and board meetings refers to the frequency of board meetings in a
year. Firm age and firm size are taken as control variables.
Muhammad Ali Shah, Qadar Bakhsh Baloch. (2018) Board Characteristics and Firms’ Financial Performance in Eras of Corporate Governance Codes 2012 in Manufacturing Sector of Pakistan, Journal of Managerial Sciences, Volume 12, Issue 3.
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