An Intermediary Perspective of Corporate Governance with Firm Performance and Economic Growth: Do Ownership Structure Initiates in Reforming Public Sector?

Abstract

A general perception of growth for any economy is considered by following the governance indicators in a positive direction. But governance is not enough when it comes to the matter of reforming a public sector in developing country like Pakistan. The study aims to inquire beyond the governance indicators in assuring economic growth but also incorporating the role of ownership structure as a foundation for any firm performance and country’s economic growth with an intermediary body of Governance indicators provided by World Bank through simple random sampling technique. In terms of economic growth, governance indicators plays a major role but when reform is concerned structure has to be considered that contributes most towards firm performance and economic growth. For data analysis quantitative technique is implied for research strategy and statistical SPSS tool for Correlation and Regression analysis have been applied in testing hypotheses developed by available and previous studies and literature. The study concluded that political instability plays a major role as intermediary in reforming public sector that effect the overall structure and performance of firm and economic growth. The proposed relational model contributes towards the public sector organizations and statistically indicates the intermediary role of corporate governance indicators between ownership structure, firm performance and economic growth.