Impact of Corporate Governance on Investment Efficiency: Evidence from Non-Financial Firm of Pakistan
The study aimed to investigate the impact of corporate governance on the investment efficiency of the non-financial firms of Pakistan. Data was taken from a sample of 56 non-financial firms listed on the Pakistan stock exchange. The data was collected from the year 2010 to 2020. Results of the Generalized method of moments (GMM) indicated a statistically significant impact of corporate governance practices i.e., board independence, board meeting, the board size, audit committee meeting, audit quality, managerial ownership, ownership concentration, and institutional ownership except for audit committee independence on investment efficiency. However, no statistically significant impact of audit committee independence on investment efficiency was found. The research concluded that adopting international standards of corporate governance might help formulate and rectify the governance system in the country by emulating the successful features of corporate governance seen in advanced economies.
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