The Relationship of Corporate Governance and Firm Performance

This survey based research administered 300 questionnaires to the middle and top level managers of 130 Karachi Stock Exchange (KSE) listed firms. The questionnaire used in this study was designed to study the relationship between corporate governance structure and firm performance. The findings of this research shows that among corporate governance dimensions, “commitment to corporate governance” ,  “transparency and disclosure” and “Structure and function of Board” have the highest middle and lowest mean values respectively assigned by the sample studied. Further regression analysis showed that “commitment to corporate governance” ,  “transparency and disclosure” have significant positive relationship with firm performance. Finally study find that “Structure and function of Board” has positive with firm performance that is not statistically significant. Keyword: corporate governance, firm performance, commitment to corporate governance and transparency and disclosur