How the External Governance Mechanisms Affect the Market Related Performance Measures: Evidence from Non-Financial Firms Listed on Pakistan Stock Exchange
DOI:
https://doi.org/10.64428/rm/v6.i1.3Keywords:
External Governance, Market Performance, Non-Financial Firms, PakistanAbstract
The paper assesses the relationship between the governance indicators and the market-related performance in Pakistan between 2009 and 2022. The sample comprised 184 publicly listed companies. STATA was used to analyze the association between the variables. The findings suggest that the control of corruption and quality of regulations is positively and significantly correlated with performance. The study results imply that some governance indicators contribute to the performance of firms, whereas others have negative effects on it. Being an inquiry in the Pakistani setting, the study provides valuable insights by studying the effects of external governance on performance as a performance measure of the market. In the future, research should carry out cross-country comparisons and provide a more in-depth analysis of the relationship among the variables under study.
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