Corporate Governance Attributes and Firm Performance: A Panel Data Analysis

This study investigates the impact of board characteristics on the financial performance of firms listed on the Pakistan Stock Exchange (PSX), focusing on KSE-100 index companies from 2015 to 2024. Using 740 firm-year observations, we explored the role of gender diversity, board size, firm Age, and industry type as independent variables, with firm size as a control variable. Financial performance is measured using multiple indicators, namely Return on Assets (ROA), Return on Equity (ROE), Profit Margin, Earnings Before Interest and Taxes (EBIT), and Tobin's Q. The results reveal that gender diversity, board size, and firm Age exhibit significant positive relationships with financial performance, suggesting that diverse and well-structured boards contribute to better decision-making and long-term value creation. Industry type also has a meaningful but comparatively smaller effect on firm performance. As a control variable, firm size has a consistent yet modest positive influence across all models. Overall, the findings highlight the importance of board composition and firm-specific factors in driving sustainable financial outcomes in emerging markets, such as Pakistan.

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Publication Details

Journal
Indus journal of social sciences.
Published
2025-06-06
DOI
https://doi.org/10.59075/ijss.v3i2.1939
Primary Topic
Bacterial Identification and Susceptibility Testing
Type
article
Field-Weighted Citation Impact
0.00
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article

Corporate Governance Attributes and Firm Performance: A Panel Data Analysis

Indus journal of social sciences.
Bacterial Identification and Susceptibility Testing
article

Corporate Governance Attributes and Firm Performance: A Panel Data Analysis

article en

Abstract

This study investigates the impact of board characteristics on the financial performance of firms listed on the Pakistan Stock Exchange (PSX), focusing on KSE-100 index companies from 2015 to 2024. Using 740 firm-year observations, we explored the role of gender diversity, board size, firm Age, and industry type as independent variables, with firm size as a control variable. Financial performance is measured using multiple indicators, namely Return on Assets (ROA), Return on Equity (ROE), Profit Margin, Earnings Before Interest and Taxes (EBIT), and Tobin's Q. The results reveal that gender diversity, board size, and firm Age exhibit significant positive relationships with financial performance, suggesting that diverse and well-structured boards contribute to better decision-making and long-term value creation. Industry type also has a meaningful but comparatively smaller effect on firm performance. As a control variable, firm size has a consistent yet modest positive influence across all models. Overall, the findings highlight the importance of board composition and firm-specific factors in driving sustainable financial outcomes in emerging markets, such as Pakistan.

Indus journal of social sciences.Vol. 3(2)
Government College University, Faisalabad (PK)
Gender equality
Openalex Percentile: Top 38%
Bacterial Identification and Susceptibility Testing
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