Mediating Role of Liquidity Policy on the Corporate Governance-Performance Link: Evidence from Pakistan

• 발행기관: 한국유통과학회
• 저자명: Safdar Husain TAHIR Muhammad Abu Bakar SADIQUE Nausheen SYED Faiza REHMAN Muhammad Rizwan ULLAH
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.8, 15~23쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.08.30

영문 초록

Based on the theoretical underpinnings of the agency theory and liquidity theory, the purpose of this study is to show how managers who want to enhance the performance of Pakistan’s non-financial sector can use liquidity policy in relation to corporate governance. Nowadays, Pakistan is facing a severe liquidity crisis; this study contributes by examining the mediating role of liquidity on the link of corporate governance-performance. We use data from 63 firms from 2010 to 2018, excluding 17 outliers. To analyze the data, we use the Seemingly Unrelated Regression (SURE) model and nlcom-Stata test. Our findings support the mediating role of liquidity on the link between corporate governance and performance. In addition, the results show that corporate governance improves performance. Furthermore, the study supports a significant positive association of liquidity and performance. For robustness, we use two performance variables – return on assets (ROA) and Tobin’s q (TQ) – where ROA represents full mediation and TQ indicates partial mediation. This study helps to use liquidity policy to strengthen the inside and outside dimensions of corporate governance mechanisms that improve the performance of firms. Overall, these findings suggest better disclosure, transparency, and solutions to auditing issues that add value to the firms.

목차

1. Introduction

2. Literature Review

3. Research Methodology

4. Results and Discussions

5. Discussions and Implications

6. Conclusion and Limitations

References

키워드

Corporate Governance Liquidity Performance Mediation Nonfinancial Firms