Corporate governance and financial leverage impact on the value of firms (Evidence from Textile Sector Pakistani Listed Companies) Rashid Rehman

Safdar Hussain Tahir, Rashid Rehman, Dr. Bilal Aziz

Abstract


The purpose of this research is to check out the impact of corporate governance and financial leverage on textile firm’s value in Pakistan. For this purpose a sample of 15 textile companies is selected, out of 180 textile firms which were listed on KSE data for the period of 2007-2011. To accomplish the task correlation and regression are used. Overall correlation results show that there is negative relationship between corporate governance and textile firms in Pakistan but positively correlated with financial leverage. But the regression study discloses CEO duality, Audit committee has insignificant impact on firm’s value and ROA shows also negative but insignificant impact on firm value. However on the other hand financial leverage has positive and insignificant relationship with textile firms. Other findings also show board size has negative but significant impact on value of textile firms of Pakistan. Finally, I am realizing that an organization having very strong management, having good governance it should be very good in its value. This research contribute to the literature on the affairs  that effect value of firm the outcome of this research possibly help full for investors, Managers, and financial administration advisor.


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ISSN : 2251-1555