Corporate governance and capital structure as driving force for financial performance: Evidence from non-financial listed companies in Pakistan

Zahid Bashir, Ghulam Ali Bhatti, Asad Javed


Abstract This research examines the intervention of capital structure with different characteristics of corporate governance and different measures of financial performance. Data was collected from 113 PSX listed firms ranging from 2013-2018. The study uses multiple regression approach for testing the required set of hypotheses. The results reveal that insider shareholding, and board size significantly but negatively affect financial performance whereas, audit committee's size positively, and significantly affects financial performance. Furthermore, about 20% of CEOs hold dual positions in listed firms, which also has a positive impact on financial performance. The results also reveal that capital structure positively influences financial performance. This research adds to the literature on corporate governance and firm performance in emerging countries, particularly Pakistan.

Keywords: Corporate governance, Capital structure, Financial performance

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