Sangeen Shanwari, Dr. Umer Qazi, Ishtiaq Khan, Asif Rauf, Bilal Said


The goal of this study is to investigate the financial performance of listed Pharmaceutical
companies in Pakistan impacted by different board characteristics. These board characteristics are discussed
through two theories: agency theory and resource dependency. The understudy characteristics include research
& development, independent board directors, leverage, CEO/Chair duality, board size and audit committee. The
paper used panel regression analysis on 11 firms from period of 2010 to 2019. It was found that investment in
research & development and audit committee have significant and positive impact on the performance of firms
as per agency theory. Whereas the characteristics like Independent directors, CEO duality, leverage and board
size had negative impact on the performance of the firms. The study helps to clarify the Board's performance
relationship and offers academic proof of existing and future governance changes for policy makers in Pakistan.
The conclusions add to the literature by presenting fresh and original perspectives into how the existing
knowledge of corporate governance and financial performance is applied within a developing context of


Pakistan, corporate governance, firm’s performance, Pharmaceutical firms, R&D

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