Impact of Corporate Governance on Islamic Banking: Evidence from Pakistan

Abstract

Purpose- The intention of this experiential research is to investigate corporate governance effects on capital structure of all KSE listed firm in Pakistan. Design/methodology/approach: Through expending wide-ranging sample of listed companies of Karachi stock exchange and through applying regression model in which fixed effect techniques has been used in order to get results and analyses the relationship between corporate governance and capital structure. Findings: Finding shows that Board meetings are negatively correlated with short-term debt. ROA and CEO Duality are negatively correlated with long-term debt. Rest all variables are positively correlated with capital structure. Practical Implications: The outcomes of this study are very helpful for all managers on all levels to better understand the corporate governance rules and their importance as well as also helpful for work effectively and efficiently in Pakistan environment. Study is also supportive for further more studies on this topic. Originality/value: The study involves short-term debt ratio as corporate structure measure of listed companies in Karachi stock exchange in Pakistan. Keywords: Corporate Governance, Capital structure, Islamic Banks

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