Corporate Governance and Performance of Banking Sector in Pakistan

Abstract

This paper investigates the impact of corporate governance variables on the financial performance of banking sector in Pakistan. For this purpose, the data of financial performance and corporate governance variables of thirty banks are used for the period of 2001-2009.The panel regression analysis is applied to determine this effect, firstly for the whole banking sector, and secondly for different types of banks. These types are categorized on the basis of their ownership and banking practices. The results show that there is a significant impact of corporate governance variables on the performance of overall banking sector in Pakistan. But there is no significant impact of corporate governance practices on the performance of foreign banks