Abstract
The financial crises of 2007-8, led to some serious ‘soul searching’ among intellectuals and
practitioners about the way financial sector is being regulated and supervised. Similarly, recent
mega corporate failures and scandals also warranted scholars and policy makers to re-examine
the way companies are governed from more comprehensive and broad perspectives. Hence this
study adopts a multidimensional corporate governance index and empirically examines the
relationship between corporate governance and firm performance for listed firms on Pakistan
Stock Exchange. In addition, we contribute by incorporating the moderating role of
demographic characteristics of the executives into the corporate governance framework to
enrich and enhance the effectiveness of corporate governance mechanisms for Pakistani firms.
We select companies listed on PSX-100 index as a benchmark and a representative index to
reflect the conditions of Pakistan Stock Exchange over the period of 2010 to 2016. We find
positive relationship between firm performance and corporate governance. Whereas,
heterogeneity among the demographic characteristics of board of directors such as average age,
functional heterogeneity, average tenure and tenure heterogeneity were found to be negatively
affecting the same.”
Dr. Abdur Rahman Aleemi, Dr. Imam Uddin. (2020) Corporate Governance and Firm Performance: The Moderating Role of Directors Demographic Characteristics, KASBIT Business Journal, Volume-13, Issue-2.
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