Introduction: variety of stakeholder interests are objective. “Corporate

Introduction:

Corporate
governance is an important feature of business. Corporate governance is define
as the form of business in which an organization is aimed, controlled and administrate.
The main objective of corporate governance is to keep the attention of
shareholders and stakeholders of the company. When the attention of
stakeholders is protected; this will also bring positive change in performance
of the firm. The corporate governance structure indicates the sharing of roles,
responsibilities and rights between different competitor in the firm like as
all stakeholders, management and shareholders.

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 Corporate governance is the means by which
minority shareholders are protected from expropriation by managers or
controlling shareholders. Stable system of corporate governance is much
necessary for increasing worth of organization in both developing and developed
financial institution. Financial strength and value for corporation differ by
the reason of unequal formation of corporate governance in growing and well established
financial institution.

Corporate
governance is the classification of rules, practices and process by which a
firm is directed and controlled. Corporate governance basically involved in
balancing the interests of a firm’s many stakeholders such as shareholders,
management, consumers, suppliers, financiers, government and the community.

 

“Corporate
governance is the classification by which firms are directed and controlled”.
Specially it is the framework by which a variety of stakeholder interests are objective.

 

“Corporate
governance involve a set of association between a firm’s management, its board,
its shareholder and stakeholder. Corporate governance also provide the
structure of a company  through which the
objective of the business are set and the way of attaining those objectives and
monitor performance are determined.”

 

 

The objective of
our study is to examine how the performance of the company is affected by the
corporate governance and what is the connection that exist between the company performance
in Pakistan. We acknowledge that the extent of corporate governance in any firm
is largely subjective in nature, making it difficult to measure it by using
Secondary Method. Corporate

Governance is
not an end but it’s a continuous process.

The research
question is to examine the impact of corporate governance on company financial
performance. How it effect the firms in Pakistan?

·        
Is there any association exists between
corporate governance and corporate financial performance?

·        
If it is there than how much significant
is that relationship?

·        
What are the implications of analysis in
Pakistani context?

The problem of
our research is to improve the perceiving of investors about the significance
of corporate governance of developed and non-developed economy. The need for
effective corporate governance is evidenced and reactionary governance reforms
have been instigated to prevent such events happening again to protect the
interest of investors in developing countries. The problem pertaining to
corporate governance had been increasingly spoken of in the recent past and the
revised and expanded Code of Best Practice (CBP) on corporate governance. The
main issue is to measure whether the vacant corporate governance mechanisms
influence the company performance in Pakistan.

It is important
for company to think that the impact of corporate governance on company
financial performance. The literature suggested that there is significant
relation between corporate governance and firm’s financial performance.
Corporate governance is intended to increase the responsibility of company and
to evade huge disaster.