Abstract:
The main purpose of this study is to observe the effects of Corporate Governance
practices on the financial performance of commercial banks in Pakistan. The theme of
this study is to examine governance variables which includes board size, board
composition, and audit committees that how they affect the financial performance of
commercial banks in Pakistan. This research used both quantitative and qualitative
techniques for the purpose of data collection. The population of this study consist the
staff members of five selected commercial banks. The primary data collected through the
help of questionnaire survey in different branches of banks which are located in
Islamabad. The secondary data collected from the annual reports of banks for the period
of 2005 to 2014. The performance of banks are measured on the basis of return on equity
(ROE) and earning per share (EPS) for that purpose panel data is used.For the purpose of
analysis this research used a descriptive approach and multiple linear regression model.
The results of study indicate that the board size, board composition and audit committees
have strong positive relationship with the performance of banks, whereas board
composition find no relationship with the performance when measured with return on
equity.
