IMPACT OF RESEARCH & DEVELOPMENT ON THE PERFORMANCE OF PHARMACEUTICAL FIRMS: EVEDENCE FROM PAKISTAN

The goal of this study is to investigate the financial performance of listed Pharmaceuticalcompanies in Pakistan impacted by different board characteristics. These board characteristics are discussedthrough two theories: agency theory and resource dependency. The understudy characteristics include research& development, independent board directors, leverage, CEO/Chair duality, board size and audit committee. Thepaper used panel regression analysis on 11 firms from period of 2010 to 2019. It was found that investment inresearch & development and audit committee have significant and positive impact on the performance of firmsas per agency theory. Whereas the characteristics like Independent directors, CEO duality, leverage and boardsize had negative impact on the performance of the firms. The study helps to clarify the Board's performancerelationship and offers academic proof of existing and future governance changes for policy makers in Pakistan.The conclusions add to the literature by presenting fresh and original perspectives into how the existingknowledge of corporate governance and financial performance is applied within a developing context ofPakistan