International Journal of Accounting and Management Sciences (IJAMS)
Vol1 No.2 October 2022
DOI https://www.doi.org/10.56830/WWPT2651
Author
Kehkashan Nizam
Abstract
Corporate governance is important in developing a culture of integrity in
an organization that enhances the performance of business resulting in sustainability in
the business of the organization. The purpose of this study is to investigate the impact
of corporate governance factors on bank performance in Pakistan. The data was collected
from 15 banks from the period of 2010 to 2020. The data was collected from the financial
reports of the banks. The dependent variable was returning on assets as a proxy of firm
performance and the independent variables were corporate governance factors (namely, the
board size, firm size, independent directors, CEO duality, and leverage). The technique was
applied for this research included the Co-integration test, the Hausman test to determine
Random or Fixed Effect, and the Panel Least Square Regression to check the relationship
between variables The result found that board size has a significant effect on return on assets
indicated that optimum board size in an organization increases the ROA. The results found
board independence has a significant effect on return on assets indicating the independency of
directors is involved in creating greater value for shareholders. The results found that
CEO/Chairman duality has an insignificant impact on return on assets. The results found
leverage has a significant impact on return on assets indicating that having high leverage
earns more profit. The results found a positive impact of firm size on return on assets. Results
can be concluded that improvement in corporate practices increases the firm
performance shows the positive revenue generates by the company and the company used its
assets through business. Good CG practices make firm-healthy
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