Impact of Corporate Governance on Share Price of Firms

The objective of this study is to examine the relationship between corporate governance and share price of companies listed at Pakistan Stock Exchange (PSX) using a sample of 80 non-financial companies and employing empirical study approach to analyze their corporate governance structures based on variables like board size, board independence, CEO duality, managerial ownership, and ownership concentration. The data of share prices were gathered from 2011 to 2020 and the specific relationships were estimated using fixed effects regression model. According to the findings, the variables, such as board size, board independence, ownership concentration, earnings per share, leverage, and firm size, have a significant relationship with share price of listed companies. However, there was no evidence found to support a significant association between managerial ownership, CEO duality and share prices of selected companies. The findings of the study are useful for policymakers and regulators of Pakistan and other developing countries facing similar problems of corporate governance.