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dc.contributor.authorWang, Y.
dc.contributor.authorAbbasi, K.
dc.contributor.authorBabajide, Bola
dc.contributor.authorYekini, K.
dc.date.accessioned2019-10-15T14:36:22Z
dc.date.available2019-10-15T14:36:22Z
dc.date.issued2019-11-21
dc.identifier.citationWANG, Y. , ABBASI, K., BABAJIDE, B. and YEKINI, K. (2019) Corporate governance mechanisms and firm performance: evidence from the emerging market following the revised CG code. Corporate Governance: The International Journal of Business in Society. 20 (1), pp. 158-174en
dc.identifier.issn1472-0701
dc.identifier.urihttps://dora.dmu.ac.uk/handle/2086/18618
dc.descriptionThe file attached to this record is the author's final peer reviewed version.en
dc.description.abstractPurpose: This study examines the extent to which board characteristics and ownership structure affect firm performance with specific focus on providing new empirical insights following the revised Corporate Governance (CG) code 2012. Design/methodology/approach: This study uses a sample of non-financial firms listed on Pakistan Stock Exchange (PSX)-100 index for the years 2011 to 2014. Firm performance is measured by accounting-based performance indicators (ROA and ROE) and market-based performance indicators (Tobin’s Q and MTB). This study employs multivariate regression techniques including Fixed Effects Model (FE) and Two-Stage Least Squares (2SLS). Findings: The findings show that board diversity increases over the two time periods (Pre-2012 and Post-2012), whereas there are cases that companies have not fully complied with the revised CG code 2012 in terms of board independence. In addition, the multiple regression results show that firm performance is negatively and significantly associated with institutional ownership. Nevertheless, the results show that board size, board independent, board diversity and board meetings do not have significant impact on firm performance. The findings are fairly consistent and robust across two time periods (Pre-2012 and Post 2012) and a number of econometric models that sufficiently address the potential endogeneity problems. Originality/value: To the best of our knowledge, this is the first empirical study which investigates the impact of the compliance and implementation of 2012 corporate governance code on firm performance in Pakistan. This study is different from the most prior studies in that we utilize independent non-executive directors rather than conventional non-executive directors to measure board independence.en
dc.language.isoenen
dc.publisherEmeralden
dc.subjectCorporate governanceen
dc.subjectBoard characteristicsen
dc.subjectGender diversityen
dc.subjectOwnership structureen
dc.subjectFirm performanceen
dc.subjectPSX-100 indexen
dc.titleCorporate Governance Mechanisms and Firm Performance: Evidence from the Emerging Market Following the Revised CG Codeen
dc.typeArticleen
dc.identifier.doihttps://doi.org/10.1108/cg-07-2018-0244
dc.peerreviewedYesen
dc.funderNo external funderen
dc.cclicenceN/Aen
dc.date.acceptance2019-09-15
dc.researchinstituteFinance and Banking Research Group (FiBRe)en


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