Corporate Governance and Firm Performance: A Case Study of Textile Spinning Firms Listed at Karachi Stock Exchange (KSE)

Abstract

This paper enlightens the antecedences triggered by the governance based mechanisms upon the performance of the listed firms at Karachi Stock Exchange (KSE). For this purpose, one of the heavily contributing industries of Pakistan, the textile spinning industry has been targeted. The firms indulged within the process of empirical estimation were listed at KSE for the period of 2009 to 2017. Sources of the data were annually audited financial statements published by firms, Balance Sheet Analysis (BSA) and Financial Statement Analysis (FSA) published by the State Bank of Pakistan (SBP). The framework of study undergone descriptive analytical reasoning followed by the panel data methodological approach, utilizing fixed effect methodological adaptations at major. The results deduced that the governance based mechanisms carved by the Securities and Exchange Commission of Pakistan (SECP), upon an aggregate level, affected positively and significantly the performance of listed firms.