CORPORATE GOVERNANCE AND FIRM’S PERFORMANCE: A STUDY ON THE FOOD AND BEVERAGE SECTOR LISTED IN THE PAKISTAN STOCK EXCHANGE (PSX)

Abstract

Corporate governance is the co-ordination of guidelines, practices and techniques that are incorporated by organisation. Strong corporate governance policies empower the growth as well as the survival of the companies. The basis of this research to find out the relationship among corporate governance and the financial performance of the companies of food and beverage sector, listed on the Pakistan Stock Exchange(PSX).The financial data for the research was taken from the annual reports of thirteen companies ranging from 2012 to 2020. The data was panel data and was analysed using regression to create a contributory connection among the variables. The overall results support both a positive and negative relationshipwith dependent variables(profit margin, return on capital employed and EPS) and independent variables (board size, board meetings, and CEO duality)at 99.99%, 99.95%, and 90% confidence levels. However there is insignificant relation of audit committee HR and remuneration committee. Pakistan is a developing country where execution of the sound codes of corporate governance not take seriously. It is the responsibility of the regulatory specialists to instruct the foodand beverage firms to strictly monitor the codes of corporate governance by creating its implication stronger.Theseconclusions have empirical implications for policy makers and governments.