Variables affecting Corporate Governance in the Profitability of Banks in Pakistan

Abstract

Purpose: Understanding the issue of Corporate Governance requires to think beyond the Profit maximization for the firm. Corporate governance is the effective control of the issue regarding top management. Corporate governance is the major element of the present international business system. This research therefore investigates the connection between corporate governance and financial institutions profitability in Pakistan.

Methodology: For this purpose a questionnaire is being adapted and responses are gathered from the executive body in banks of all the three divisions of Southern Punjab.

Findings: The research found that good corporate governance is necessary for the profitability in banks.

Limitation: The limitation of the study is that we had a small sample size due to the time constraint but it provides a research framework for future studies.