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Do Board Independence Carry Value? A Case Study of Pakistani Banks

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Author Affiliations

  • 1 School of Banking and Finance, GC University Faisalabad, PAKISTAN

Res. J. Management Sci., Volume 2, Issue (5), Pages 1-5, May,6 (2013)

Abstract

This study examines the influence of board independence on baking performance of Pakistan over the period of 2007 to 2011. This particular study is conducted by employing publically available data from the websites of Karachi stock exchange and Central bank of Pakistan. Descriptive statistics, correlation and regression analysis are used as most appropriate techniques to find out the results. Outcomes of study revealed a positive impact of board size and independent board members on return on assets and earnings per share. On the basis of outcomes it is suggested that banks with independent boards will perform better than banks having dependent boards.

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