DOES GOVERNANCE PAY OFF? ASSESSING THE IMPACT ON FIRM VALUE IN PAKISTAN

Abstract

The purpose of this research is to investigate the connection between governance at the country level and the firm value of Pakistani firms from 2013 to 2022. This research contributes to the literature by using governance features at the country level instead of firm-specific aspects. In this paper, panel data was analyzed using GMM. It may be concluded from Pakistan's empirical data that elements of country governance enhance the value of companies operating there. The findings of this research study have broad implications for businesses, present and potential local and foreign shareholders and investors, management, and governments. The present study's findings demonstrated that governance factors at the national level enhance Pakistani companies' value. This information is also necessary for the local and global potential that stands to benefit from the macro factors. The policy maker must concentrate on country governance for betterment the of firms value.