Departement of Finance
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To be the most innovative and dynamic department recognized for its high quality and creative methodology to disseminate financial knowledge and skills in individuals who will take leadership roles to tackle ever changing financial and economic markets around the globe.
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Browsing Departement of Finance by Author "Shahzeb Ahmed, Wattoo"
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Item The value added efficiency and corporate governance within Saarc(University of Management and Technology Lahore, 2017) Shahzeb Ahmed, WattooThe corporate scandals of 21st century have established the need for having corporate governance mechanism in place in order to be able to protect various stakeholders’ interests. Consequently, many countries have responded to these pressures by working closely with international institutions such as World Bank, IMF and Organization for Economic Co-operation and Development by adopting codes of corporate governance. To mitigate the conflicts arising from separation of control and ownership, board of directors is known to be one of the internal corporate governance controls in place while external actors of corporate governance are various types of shareholders themselves. The main objectives of the study are to explore various ownership structures and the board practices, their changing dynamics and to examine the impact these variables on the corporate performance measured as value added efficiency of corporate resources from four of the SAARC countries namely Bangladesh, India, Pakistan and Sri Lanka. This research uses data of listed companies in chemical and pharma sector for a period beginning 2010 and ending 2015. The study, based on the prior literature, uses selective ownership structures as external actors of corporate governance and selective attributes of Board of Directors to measure the internal corporate governance practices and uses Pulic’s Value Added Intellectual Coefficient (VAICTM) model to measure value added efficiency of corporate assets. The exploratory process reveals a thin improvement in corporate governance landscape over the six-year observatory period where Pakistan and India improved significantly while the corporate governance worsened in Sri Lanka. Variation of internal corporate governance practices has been also observed as certain companies within the region were found not adopting the codes of corporate governance while some entities stepped beyond the minimum requirements of the codes. Moreover, the regression results indicate that various ownership structures significantly impact corporate performance in most of the region. On the other hand, corporate performance is not significantly affected by the selective board practices as certain coefficients were found insignificant in various regions. This process was further repeated for firms of different asset sizes revealing little evidence of the impact of various corporate governance indicators on corporate performance. These findings are important to practitioners as well as policy makers as it allows them to have an insight into the corporate governance practices within firms allowing them to make investments with care, finding deficiencies within the system and making recommendations such that an optimal corporate governance system is enacted.