Abstract:

The objective of this research is to consider the connections between various corporate governance mechanisms, CEO-Duality, and business performance on Car Assembler Companies listed on Pakistan Stock Exchange (PSX). The data has been analyzed from 2016-2020. T-test and multiple regressions have been applied to verify the effect of corporate governance on business performance. The investigation results indicate that the Size of the Board, Audit Committee, Annual general meeting, and CEO-duality contain a positive relationship to companies’ performance. As a result, the correlation coefficient explains that return on equity and profit margin has a positive relation with independent variables for example Board size, Audit committee, Annual general meeting, and CEO-Duality but, all of them are statistically insignificant. Moreover, ROE Coefficient Results in Fixed Effects and Random Effects Model indicates that only board size has a negative and significant effect on ROE. More specifically, PM Coefficient Results in Fixed Effects Model explain that the Size of the Board shows a negative and insignificant impact on PM. Moreover, the other two independent variables i.e. Audit Committee and Annual General Meeting show a positive and insignificant effect on PM. While in the PM Coefficient Results in Random Effects Model explain that the Size of the Board, Audit Committee, and Annual General Meeting show a positive and insignificant effect on PM. Besides that, Duality shows a negative and insignificant effect on PM.

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