Paper Titles in Periodical
International Letters of Social and Humanistic Sciences
ILSHS Volume 43

Subscribe to our Newsletter and get informed about new publication regulary and special discounts for subscribers!

ILSHS > ILSHS Volume 43 > Corporate Governance and Firm Performance: The...
< Back to Volume

Corporate Governance and Firm Performance: The Role of Transparency & Disclosure in Banking Sector of Pakistan

Full Text PDF


Purpose: This purpose of this paper is to empirically examine the relationship between transparency and disclosure and firm performance. Highlighting the importance of corporate governance in banking sector, the paper has focused in depth over its role, level and its impact on performance in banking industry of Pakistan. Design/methodology/approach: The paper access this purpose by constructing transparency and disclosure index for the past five year 2007-2011, using proxies for three sub-categories which are board and management structure disclosure, ownership structure disclosure and financial transparency disclosure. The paper also investigated structural changes of T&D Index and its effect on bank financial performance over the sample of 30 banks operating in Pakistan. Findings: Empirical analysis results by using ordinary least square regression model, reveals that financial performance is positively related to the transparency and disclosure and their sub levels except ownership structure disclosure which has negative relation with both ROA and ROE. Furthermore the average T&D level in Pakistani banking sector is above average. Practical implications: The current research paper aims for important policy implementation to reduce information asymmetry and improve corporate governance and firm performance in banking sector of Pakistan.


International Letters of Social and Humanistic Sciences (Volume 43)
R. Zaman et al., "Corporate Governance and Firm Performance: The Role of Transparency & Disclosure in Banking Sector of Pakistan", International Letters of Social and Humanistic Sciences, Vol. 43, pp. 152-166, 2015
Online since:
November 2014

Arslan, M., Zaman, R., Malik, R. K. & Mehmood, A. (2014). Impact of CEO Duality and Audit Committee on Firm Performance: A Study of Oil & Gas Listed Firms of Pakistan. Research Journal of Finance and Accounting, 5, 151-156.

Arslan, M. & Zaman, R. (2014). Constraints and Barriers in Corporate Governance and Managerial Efficiency: A Comparative Analysis. Developing Country Studies, 4, 83-94.

Attiya, Javid, & Iqbal. (2012). Ownership Concentration, Corporate Governance and Firm Performance: Evidence from Pakistan. Pakistan Institute of Development Economics.

Akhtaruddin & Haron (2010). Board ownership, audit committees, effectiveness and corporate voluntary disclosures. Asian Review of Accounting, 18(1), 68-82.

Akhtaruddin. (2005). Corporate mandatory disclosure practices in Bangladesh. International Journal of Accounting, 40(4), 399-422.

Anderson, R, Mansi, S., & Reeb, D. (2004). Board Characteristics, Accounting Report Integrity, and The Cost of Debt. Journal of Accounting and Economics, 37, 315-342.

Avkiran, N. K. (1995). Developing an instrument to measure customer service quality in branch banking. International Journal Of Banks Marketing, 12(6), 10-18.

Barako. (2007). Determinants of voluntary disclosures in Kenyan companies annual reports. African Journal of Business Management, 1(5), 113-128.

Barako, Hancock, P., & Izan, H. Y. (2006a). Relationship between corporate governance attributes and voluntary disclosures in annual reports: The Kenyan experience. Financial Reporting Regulation and Governance, 5(1), 1-25.

Ben Ali, C. (2008). Disclosure quality and corporate governance: Evidence from the French stock market. Paper presented at the The British Accounting Association Annual Conference, Blackpool, UK.

Brown, D, L., & Claylor, M. L. (2004). Corporate Governance and Firm Performance. Working Paper. Gorgia State University, USA.

Byard, D, Li, Y, Weintrop, & J. (2006). Corporate governance and the quality of financial analysts' information. Journal of Accounting and Public Policy, 25(5), 609-625.

Callahan, C, Smith, & R. (2004). Firm performance and management's discussion and analysis disclosures: An industry approach. Working paper. University of Arkansas.

Chau, K, G., Gray, & J, S. (2002). Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. The International Journal of Accounting, 37, 247-265.

Cheema, & A. (2003). Corporate Governance in Pakistan: Issues and Concerns. The Journal, 8(2).

Chen, P, C. J., Jaggi, & B. (2000). Association between independent non-executive directors, family control and financial disclosures in Hong Kong Policy. Journal of Accounting and Public Policy, 19, 285-310.

Cheng, M, E. C., Courtenay, & M, S. (2006). Board composition, regulatory regime and voluntary Disclosure. International Journal of Accounting, 41(3), 262-289.

Chi, C, L., Lin, & Y, Y. (2008). A study on the factors influencing the information disclosure & transparency rating system. Paper presented at the international conference on global business theoretical and empirical works Providence University.

Choe, H, Lee, & BS. (2003). Korean bank governance reform after the Asian financial crisis. Pacific-Basin Finance Journal, 11(4), 483-508.

Drobetz, W., Schillhofer, A., & Zimmermann, H. (2004). Corporate governance and expected stock returns: evidence from Germany. European Financial Management, 10, 267-293.

Durnev, Kim, A., & H, E. (2005). To steal or not to steal: Firm attributes, legal environment, and valuation. Journal of Finance, 60, 1461-1493.

Eng, L, L., Mak, & T, Y. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22, 325-345.

Firth, M, Fung, PMY, Rui, & OM. (2002). Simultaneous relationships among ownership, corporate governance and firm performance.

Florackis, C, Ozkan, & A. (2004). Agency costs and corporate governance mechanisms: Evidence for UK firms.

Gompers, P, Ishii, L., & Metrick, A. (2003). Corporate Governance and Equity Prices. Quarterly Journal of Economics, 107-155.

Gul, A, F., Leung, & S. (2004). Board leadership, outside directors' expertise and voluntary corporate disclosures. Journal of Accounting and Public Policy 23, 1-2.

Hakim Ben Othman (2012). The effect of board structure and process disclosure on corporate performance in the emerging African markets, Managerial Auditing Journal, 27(2), 156-174.

Henry, D. (2008). Corporate governance structure and the valuation of Australian firms: Is there value in ticking the boxes? Journal of Business Finance & Accounting, 35, 912-942.

Hermalin, E, B., Weisbach, & S, M. (2011). Information disclosure and corporate governance, Journal of Finance, Forthcoming.

Hermalin, B., & Weisbach, M. (2003). Board of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature. Economic Policy Review, 9, 7-26.

Hossain. (2008). The Extent of Disclosure in Annual Reports of Banking Companies: The Case of India. European Journal of Scientific Research, 23(4), 659-680.

Hossain, & Reaz, M. (2007). Determinants and characteristics of voluntary disclosure Indian banking companies. Corporate Social Responsibility and Environmental Management, 14(5), 274-288.

Iatridis. (2008). Accounting disclosure and firms' financial attributes: Evidence from the UK stock market. International Review of Financial Analysis, 17(2), 219-241.

Jensen, M, & Meckling, W. (1976). Theory of the Firm: Managerial Behaviour, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3, 305-360.

John, K., & Senbet, L. W. (1998). Corporate Governance and Board Effectiveness Journalof Banking and Finance 22, 371-403.

Klein, P, Shapiro, D., & Young, J. (2005). Corporate Governance, Family Ownership and Firm Value. Corporate Governance, 13.

Lakhal, & F. (2005). Voluntary earnings disclosures and corporate governance: Evidence from France. Review of Accounting and Finance, 4(3), 64-85.

Lang, M., & Lundholm, R. (1993). Cross-sectional determinants of analysts ratings of corporate disclosures, Journal of Accounting Research, 31, 246271.

Lang, M., & Lundholm, R. (1996). Corporate disclosure policy and analyst behavior, The Accounting Review, 71, 467-492.

Luo, S, Courtenay, SM, Hossain, & M. (2006). The effect of voluntary disclosure, ownership structure and proprietary cost on the return-future earnings relation. Pacific- Basin Finance Journal, 15(5), 501-521.

Luo, S., Courtenay, SM, & Hossain, M. (2006). The effect of voluntary disclosure, ownership structure and proprietary cost on the return-future earnings relation. Pacific- Basin Finance Journal, 14(5), 501-521.

Ntim, C. G., Opong, K. K., & Danbolt, J. (2012). The Relative Value Relevance of Shareholder versus Stakeholder Corporate Governance Disclosure Policy Reforms in South Africa. An International Review, 20(1), 84-105.

Owusu, & Yeoh. (2005). The effect of legislation on corporate disclosure practices. ABACUS, 41(1), 92-109.

Patel, S. A., Balic, A., & Bwakira, L. (2002). Measuring transparency and disclosure at firmlevel in emerging markets. Emerging Markets Review, 3, 325-337.

Renders, A., Gaeremynck, A., & Sercu, P. (2010). Corporategovernance ratings and performance: a cross-European study. Corporate Governance. An International Review, 18, 87-106.

Sharma, N. (2013). Theoretical Framework for Corporate Disclosure Research. Asian Journal of Finance & Accounting, 5(1).

Shleifer, A., & Vishny, R. (1997). A Survey of Corporate Governance. Journal of Finance, 52, 737783.

Weir, & C. (1997).

Show More Hide
Cited By:

[1] R. Zaman, S. Bahadar, U. Kayani, M. Arslan, "Role of media and independent directors in corporate transparency and disclosure: evidence from an emerging economy", Corporate Governance: The international journal of business in society, 2018


[2] E. Al Matari, M. Hussein Mgammal, "The moderating effect of internal audit on the relationship between corporate governance mechanisms and corporate performance among Saudi Arabia listed companies", Contaduría y Administración, Vol. 64, p. 143, 2019


[3] H. Yumei, W. Iqbal, M. Nurunnabi, M. Abbas, W. Jingde, I. Chaudhry, "Nexus between corporate social responsibility and firm’s perceived performance: evidence from SME sector of developing economies", Environmental Science and Pollution Research, Vol. 28, p. 2132, 2021


[4] H. Yumei, W. Iqbal, M. Nurunnabi, M. Abbas, W. Jingde, I. Chaudhry, "Nexus between corporate social responsibility and firm’s perceived performance: evidence from SME sector of developing economies", Environmental Science and Pollution Research, Vol. 28, p. 2132, 2021


[5] Đ. Bước, N. Phương, T. Hải, Đ. Hương, C. Tảo, A. Ishimatsu, "Ảnh hưởng của CO2 lên tỉ lệ sống, tăng trưởng, enzyme tiêu hóa và glucose của tôm thẻ chân trắng (Litopenaeus vannamei Boone, 1931) giai đoạn tôm bột đến tôm giống", Can Tho University Journal of Science, Vol. Tập 55, Số 3, p. 58, 2019


[6] W. Ovelar-Fernández, M. Gálvez-Rodríguez, C. Caba-Pérez, M. Valls Martínez, "What determines the progress of online information access to banking corporate governance practices? The case of Paraguay", PLOS ONE, Vol. 17, p. e0262334, 2022

Show More Hide