IMPACT OF CORPORATE GOVERNANCE ON CORPORATE FINANCIAL PERFORMANCE IN BANKING SECTOR OF PAKISTAN

Abstract

This study examines the impact of corporate governance on the financial performance of banks in Pakistan. Using data from various banks over a specified period, it investigates how different corporate governance practices—such as board composition, audit committees, and ownership structure—affect key financial indicators like profitability, asset quality, and return on equity (ROE). The analysis reveals a significant positive correlation between effective corporate governance and improved financial performance, emphasizing the role of transparency and accountability in the banking sector. These findings offer insights for policymakers and stakeholders seeking to enhance governance frameworks and promote sustainable financial growth in Pakistan’s banking industry.