TITLE:
Board Composition Nexus to Financial Performance of Listed Companies on PSX: An Empirical Analysis
AUTHORS:
Muhammad Uzair Farooq Khan, Fayyaz Ali Khan, Luguang Zhang
KEYWORDS:
Board Composition, Financial Performance, PSX, KSE-30 Index
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.9 No.12,
December
19,
2019
ABSTRACT: This paper evaluated the nexus of board composition
with the financial performance of the firms listed on PSX. The research
specifically considered the case of KSE-30 index and data spanned from 2014 to
2018 which asserts 5 years. The board composition was represented by board
size, gender diversity, non-executive directors (NEDs), and board independence
controlled by age of firms, financial leverage and firm size. For financial
performance, the metrics of ROE and ROA was utilised. The analysis techniques
incorporate regression and correlation. In accordance with regression, the
influence on NEDs was positive on both ROA and ROE in a significant manner
whereas, gender diversity affected them negatively. Besides, board size
negatively and board independence positively influenced financial performance
but partially. In addition, financial leverage positively and partially
controlled the nexus.