Last Updated on December 16, 2024 by Fiza Khurram
Maintaining and improving financial performance is essential for companies to thrive in the dynamic South Asian manufacturing market. Business professors Barkat Ullah and Ahmed Imran Hunjra of Ghazi University in Dera Ghazi Khan dive into this murky terrain, examining how corporate governance may have a profound effect on the bottom line for factories in South Asian nations.
The research takes a holistic tack by gauging financial performance with accounting and marketing indicators including return on assets, return on equity, and tobin’s q. Audit quality, audit committee size and audit activity are only a few of the metrics used to assess corporate governance processes. Firm characteristics such as age, size, and sales growth are also taken into account as controls.
Pakistan (213), India (111), Sri Lanka (78), and Bangladesh (24), together with other South Asian countries, make up the study’s sample over the ten-year period from 2011 to 2020. These publicly traded companies’ financial records were painstakingly analyzed to reveal how corporate governance affects profitability.
Positive and potentially far-reaching outcomes were found, especially for countries still on the path to economic development. Companies with strong corporate governance practices typically have better financial and market results. The research shows how important it is for manufacturing enterprises in South Asian countries to have effective decision-making in areas like audit committee activity and size, and audit quality.
This study highlights the importance of good corporate governance in promoting growth and financial success, especially in the competitive South Asian manufacturing sector.
Companies in South Asian countries; Corporate Governance; Company Performance; Keywords.
