CCG Promulgation and Firms' Accounting Performance: A Case of an Emerging Economy


  • Mr. Manssor Ahmed ACA, APFA, M.Phil. Chief Financial Officer, Rashid Latif Khan Group
  • Waseem Subhani (Corresponding Author) Assistant Professor, Institute of Business Administration University of the Punjab, Lahore
  • Salman Riaz Assistant Professor, Lahore School of Accountancy and Finance The University of Lahore, Lahore



Code of Corporate Governance, Firms' Accounting Performance


Purpose – This study examines the impact of the code of corporate governance (CCG) before and after promulgation-2002 in Pakistan. The impact of the enhanced (updated) corporate governance code on business performance is also examined in this study, both before and after the 2012 modification.

Design/methodology/approach – It's a longitudinal study based on 20 years of firm observations, from 1999 to 2018, of 202 listed companies in Pakistan. This study applies a two-sample t-test to compare means of control and dependent variables before and after the promulgation and revision of the corporate governance code to evaluate the impact on firms' performance. In furtherance, regression analysis under the fixed effect model has been conducted to evaluate the impact on dependent variables, i.e., The indicators of a company's accounting success return on equity, profit margin, return on assets, return on return on capital employed, and earning per share.

Findings – According to empirical studies, adopting a corporate governance code has a favorable and statistically significant impact on the company's success. The study also reveals the updated corporate governance code's positive and statistically significant effect on business performance.

Research limitations/implications – This study enriches the literature on the role of the code of corporate governance firms accounting performance nexus, strengthening firms' practices. The stakeholder's protection has application to sustainable development practices in the emerging environment.

Originality/value – The distinction from prior studies is examining the impact of code based on a longitudinal period of twenty years and evaluating promulgation and revision to provide evidence that either change enhances the firm performance.


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