doi: 10.7763/IJTEF.2011.V2.76
Corporate Governance and Firm Performance: A Case study of Karachi Stock Market
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,
Khalid Zaman
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,
- Department of Management Sciences, COMSATS Institute of Information Technology, Abbottabad, Pakistan.
Abstract
This paper seeks to investigate the relationship between corporate governance and firm’s performance of twenty firms listed at Karachi Stock Exchange. The performance of corporate governance is analyzed through Tobin’s Q, while performance of the firms is measured by return on assets (ROA) and return on equity (ROE). The data set is obtained from the annual reports for the year 2005-2009. The multiple regression models are applied to test the significance of corporate governance and firm profitability. The result shows that leverage and growth have a positive relationship with Tobin’s Q, which confirms a significant effect in measuring performance of the firm. It means that firms with having good corporate governance measures perform well as compared to the firms having no or less corporate governance practices.
Keywords
- Tobin’s Q
- Leverage
- Return on assets
- Return on equity
- Karachi Stock Market
- Pakistan
How to Cite
Humera Khatab, Maryam Masood, Khalid Zaman, Sundas Saleem, and Bilal Saeed, "Corporate Governance and Firm Performance: A Case study of Karachi Stock Market," International Journal of Trade, Economics and Finance, vol. 2, no. 1, pp. 39-43, 2011. https://doi.org/10.7763/IJTEF.2011.V2.76
Copyright & License
Copyright © 2011 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).