Foreign ownership, foreign mangement and firm Performance: evidence from pakistan

Abstract

Pakistan is an emerging economy and here foreign investment has its own importance. Does foreign ownership and foreign management have any effect on performance of firm? The study examines the effect of foreign ownership and foreign management on firm performance by using the panel data of 74 non-financial organization of Pakistan which are listed in Pakistan stock exchange from 2012 to 2016. Three regression set has been used to examine the effect of foreign ownership. It has been observed that foreign ownership and foreign management are positively associated with the financial performance of firm. But minority foreign ownership is negatively associated with firm performance. Study concludes that foreign ownership and foreign management improves the firm profitability over a period of time.