Investigating the Impact of Board Effectiveness on Firm Performance: A Case of the Non-Financial Sector of Pakistan.

Present research investigates about the effectiveness of a board of directors affect a company's performance. The data set comprises of non-financial firms trading on PSX spans from 2011 to 2021. The study utilized Return on assets (ROA) and return on equities (ROE) as a measure of performance. Board size, board independence, CEO duality, frequency of board meetings, and board skills are independent variables. Data were analyzed using two-step dynamic panel systems (Sys-GMM), correlation analysis, and multicollinearity diagnostic tests. The study's empirical findings showed that the firms' performance is significantly impacted by Board Size, Board Independence, and CEO Duality. The detrimental effects of BS, BIND, and CEO duality on the performance of companies are reported. Results on the frequency of Board meetings, however, indicate a negligible effect on both performance indicators. Firm age and leverage had a large impact on the performance. Although the size of the firm does not affect on firm performance. The Agency theory, stewardship theory, stakeholder theory, and resources dependency theory were taken into account for testing the hypothesis. The study provides insight into how corporate governance practices affect firm performance from the perspective of Pakistani non-financial firms for academics and policymakers. The study's conclusions have some ramifications for Pakistan and other emerging nations. The same study can be repeated by taking Pakistan's financial sector into account and comparing the performance of financial and non-financial enterprises. [ABSTRACT FROM AUTHOR]