In this study, the effect of the corporate governance index (CGI) on company success in Pakistan is investigated. The survey consists of family businesses that are publicly traded on the PSX, and the study employs the GMM estimation methodology. ROA measures the dependent variable e.g., firm performance and CGI comprising governance variables measure the independent variable. According to the results, the CGI-performance relationship is strongly positive for Pakistani family firms. The findings show that corporate governance mechanism is critical in preventing agency problems. The study adds to the current corporate governance literature and offers advice to policy makers and regulatory authorities in developing countries that are responsible for designing and implementing governance systems.
Key words: Corporate governance, Ownership structure, Firm Performance, Pakistan stock exchange
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