Impact of Corporate Governance on Firm Performance: Evidence from Sugar Mills of Pakistan

Abstract

This paper examines the impact of corporate governance mechanisms (Board Size, Board Composition, and CEO/Chairman Duality) on firm performance (Return on Asset) in sugar industry of Pakistan. The data of corporate governance mechanisms (Board Size, Board Composition, and CEO/Chairman Duality) collected from 12 listed sugar mills of Pakistan from 2005 to 2010. Using panel data methodology as a method of estimation Arithmetic mean, ANOVA and t-test applied on data by using SPSS. The results raveled that there is a significant impact of corporate governance on firm performance. Results further reveal that there is a significant impact of board size, CEO/Chairman Duality on ROA, and there is insignificant impact of Board Composition on ROA. Keywords: Corporate governance, Board of director, firm performance