Performance Of Firms In Pakistan Research Articles

Impact of Goal Setting and Training on Job and Firm Performance in Pakistan

The aim of the present paper is to examine a framework in which goal setting that is HR input and training that is HR practice are theorize to cause remarkably and positively to job and firm performance. We concluded that positive impact of goal setting on job performance is partially mediated by training and positive impact of goal setting on firm performance is significantly mediated by training. The sample size for this research is 101 managerial level employees of business firms that are located in twin cities Rawalpindi and

Corporate Governance in Pakistan: An Empirical Study

This research examines the impact of corporate governance on the performance of firms in Pakistan. Corporate governance revolves around the basic principles of fairness, transparency, and accountability. The term Corporate Governance is used to describe a process, which has been practiced for as long as there have been corporate entities. Corporate governance is critical to improving economic efficiency and growth. It serves as a deterrent to mismanagement and infuses discipline in the decision making process of boards of directors. A number of surveys of investors in Europe and the US show that investors eventually reduce their investments in a company that practices poor governance. This paper argues that, since the monitoring of the compliance of the financial aspect of the Code in Pakistan is being done by more than one institution, companies usually end up following it. The Securities and Exchange Commission of Pakistan has not introduced any proper institution to check companies' compliance with the non-financial aspect of the code, and there is no proper tool in place to gauge if the companies are really complying with it. Companies' compliance with the non-financial aspect of the code usually remains on paper only, and the Code of Corporate Governance has no direct effect on companies' performance.

Board Composition, CEO Duality and Corporate Financial Performance

This research study sheds light on the link between different board structure attributes and financial performance among 40 firms listed with Karachi Stock Exchange, by looking at the listing requirements which persuade greater board independence. In particular this study provides evidence that board size and sales growth positively affect corporate financial performance in Pakistan. Further according to the findings of this research there is a negative relationship of executive and non-executive (independent) directors on corporate financial performance of firms in Pakistan. Findings show that there is a mixed result shown for CEO duality and director's share holding, ROE and ROI has a positive relation with CEO duality while negative association encounters as per Tobin's q model; whereas ROE relates positively with director's share holdings while ROI and Tobin's q negatively relates to director's share holdings. The rest of corporate governance parameters e.g. internal holdings and firm size have mix relationship with financial performance

Affects of Female Directors on Firms Performance in Pakistan

This study examined relationship between board gender diversity and its effect on firm performance, based on evidence from the Pakistan. We use empirical data on KSE 100 Index firms observed in 2008 to 2010. Twenty Five percent (25%) of the sample firms have at least one woman in the boardroom and only 3.33% of the CEOs are female. In order to investigate the rapport of gender diversity in board on firm performance, two-stage least-squares estimation used, using Economic Valued Added (EVA) as performance measurement technique. Our results indicate that there is no significant relationship between board gender diversity on firm performance in Pakistan. This implies that the business case for board gender diversity is not supported for this particular sample.

Corporate governance and firm performance in Pakistan: The case of Karachi Stock Exchange (KSE)-30

This paper examine the relationship between four important corporate governance mechanisms (board size, board composition, CEO/chairman duality and audit committee) and two firm performance measures (return on equity, ROE, and profit margin, PM), for a sample of 30 Pakistani listed firms between 2008 and 2009. The results provide evidence of a positive significant relationship between ROE and PM and three corporate governance mechanisms (board size, board composition and audit committee). The implication of this is that, the board size should be limited to a sizeable limit and board must be a right mixture of executive and non-executive directors. The study, however, could not provide a significant relationship between the two performance measures (ROE and PM) and CEO/Chairman duality. These results are consistent with prior empirical studies.

Can board mechanism affect the firm value in Pakistan?

Corporate governance is, undoubtedly, extremely essential for the performance of the organizations. The structure of corporate ownership has significant impact on the external as well as internal performance factors of firms. The relationship between corporate governance indicators and firm performance has been extensively investigated; however, a little work has been done on how the structure of board can add value to the firm. This paper sheds light on the relationship of some aspects of board structure like board size, board composition, and CEO duality with the performance variables Tobin’s Q and Return on Assets (ROA) by using a sample of 53 firms of cement and sugar sectors of Pakistan for a period of 2005-2007. The results indicate that the firms perform better with moderate board size and the performance is adversely affected if CEO also acts as chairperson of board of directors whereas the external directors can play a positive role for firm performance in Pakistan.

Management ownership and firm performance: Evidence from an emerging economy

Due to the separation of ownership and control in modern corporation, the form of relationship between firm performance and insider ownership has been the subject of empirical investigation for last many decades. It is argued, that as managers’ equity ownership increases, their interests coincide more closely with those of outside shareholders, and hence, the conflicts between managers and shareholders are likely to be resolved. Thus, management’s equity ownership helps resolve the agency problem and improve the firm’s performance (Jensen and Meckling, 1976; Agrawal and Knoeber, 1996; Chen et al., 2003). However, several studies suggest that management’s ownership does not always have a positive effect on corporate performance (Demsetz and Villalonga, 2000; Cheung and Wei, 2006). Most of the empirical studies on this issue have focused on the developed economies and there is little empirical evidence on the emerging economies in general and almost no work has been done on emerging economy of Pakistan in particular. Therefore, present study is an effort to analyze the relationship between insider ownership and firm performance in emerging market of Pakistan while taking a sample of 100 firms listed on Karachi Stock Exchange. In spite of entirely different characteristics of data, it has been observed that there is strong positive relationship between insider ownership and firm performance in Pakistan and the results of cross-sectional regression are consistent with theory of “convergence of interest” of relationship between insider ownership and firm performance. Although these results did not conform with the theory “ownership entrenchment” that have proved true in many developed economies yet the empirical results have provided the Pakistani corporate sector positive indications to solve the agency problem through stock options for their employees.