The Role of Corporate Governance in Firm’s Exporting Decision: Case Study from the Textile Sector in Pakistan

The aim of the current study is to determine the relationship between the factors of corporate governance and the firm exporting decision. In this study, board size, board independence, managerial ownership, institutional ownership, family ownership, and board meetings were considered factors of corporate governance. Data was collected from a sample of the textile weaving sector through purposive sampling, which consists of 11 textile sectors that were listed on the Pakistan Stock Exchange for the period of 2015 to 2020. The results of the regression analysis showed that board meetings and board independence had a positive relationship with the firm's exporting decision, meaning that both variables positively enhance the firm's exporting decision. Board size, managerial ownership, institutional ownership, board meetings, and family ownership had a negative relationship with the exporting decision of the firms, meaning that these variables have a negative influence on the firm exporting decision.