Corporate Governance Impact on Firm Performance: Evidence from Cement Industry of Pakistan

Abstract

This study reveals relation between three corporate governance instruments (Board Size, Board Composition and CEO-Status) and one firm performance is measured using accountingbased measures (return on asset (ROA) of Karachi Stock Exchange listed cement firms is observed for the period 2007–2013. The ADF Test Multiple Regression and T-test exploration are applied to examine the significance & dependency of the overhead stated variables. Panel data methodology is utilized by estimate the arithmetic means, T-test and OLC by using the E-views. The finding revealed that there is a positive and significant relationship between ROA with board size and negative significant relationship between ROA with CEO-Status furthermore insignificant relationship between ROA with Board composition. The ramifications of this is that the board size ought to be restricted to a sizeable utmost also that the post of the CEO ought to be possessed by distinctive persons.