Does compliance with corporate governance increase profitability? Evidence from an emerging economy: Pakistan
Document Type
Journal Article
Publication Title
Global Finance Journal
Volume
53
Publisher
Elsevier
School
School of Business and Law
RAS ID
44756
Abstract
Corporate governance reforms have evolved over time, but few studies have addressed firm compliance with corporate governance standards in the context of an emerging market like Pakistan. We build a Corporate Governance Compliance Index for public firms in Pakistan for 2008–2018. Our index consists of six subindices based on the key parameters of governance outlined by the Code of Corporate Governance of Pakistan. Our analysis shows that increased compliance predicts higher firm performance but entails greater compliance costs. Board Structure and Functions & Responsibilities of Audit Committee drive the compliance-performance relationship, which is affected by levels of managerial ownership and ownership concentration.
DOI
10.1016/j.gfj.2022.100716
Access Rights
subscription content
Comments
Shakri, I. H., Yong, J., & Xiang, E. (2022). Does compliance with corporate governance increase profitability? Evidence from an emerging economy: Pakistan. Global Finance Journal, 100716. https://doi.org/10.1016/j.gfj.2022.100716