Abstract
This paper aims to investigate the impact of reporting of
Corporate Governance (CG) practices and accounting
information on the market value of firms listed on Pakistan
Stock Exchange (PSX) for the period 2010-2016. For this
purpose, we used the Ohlson (1995) Valuation Model, which
incorporates variables of both CG and accounting information.
Among the CG variables, we used board size, CEO duality,
board independence, audit committee size, ranking of audit
firms, and audit committee independence. Whereas accounting
variables such as earnings per share, return on assets, sales
growth, leverage, and firm size are used to measure the
disclosure of accounting information. The results of panel
random effects estimator revealed that the disclosure of board
size, ranking of audit firms, audit committee independence,
earnings per share, growth, and firm size are value relevant
because these variables have a significant impact on share price
of firms listed on PSX. The results show partial relevance of
disclosure of CG practices and accounting information in
Pakistan. Findings of this study suggest the need for
improvements in reporting quality of CG practices and financial
outcomes of firms listed in Pakistan.
Huma Fatima, Bilal Nafees, Nisar Ahmad. (2018) Value Relevance of Reporting of Accounting Information and Corporate Governance Practices: Empirical Evidence from Pakistan, Paradigms , Vol 12, Issue 1.
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