Abstract
This paper examines the impact of corporate governance on firm performance. The return on assets and return on equity are selected as firm's performance variables for this study. The data of corporate governance and the profitability variables are collected from two manufacturing sectors Chemical and Pharmaceutical of Pakistan from 2005 to 2009. The multiple regression models are applied to test the significance of corporate governance on firm profitability. The results show that there is a significant impact of corporate governance on ROE while insignificant on ROA. In sector wise analysis, there is an insignificant impact on pharmaceutical sector's profitability and chemical sector ROA. Whereas there is a significant impact of corporate governance on chemical sector ROE.
| Original language | English |
|---|---|
| Pages (from-to) | 7-16 |
| Number of pages | 10 |
| Journal | International Research Journal of Finance and Economics |
| Volume | 50 |
| Publication status | Published - Oct 2010 |
| Externally published | Yes |