Moderating Effect of Leverage on the Relationship between Board Size, Board Meetings and Performance: A Study on Textile Sector of Pakistan

Aideed Bashir, Muzaffar Asad


Extensive research relating to corporate governance and performance of firms have been carried out, however less research has been carried relating to developing countries like Pakistan. The purpose of the study is to examine the relationship of corporate governance (CG) tools (board size, board meetings) with performance (ROA) of listed textile firms on the Pakistan stock exchange. Leverage (FLEV) has been accommodated as a moderator in the study, data has been collected concerning to 30 textile firms from the period 2015 to 2017 and multiple regression technique has been employed in the research to assess the relation among corporate governance and firm performance. The study found that both board size (BS) and board meetings (BM) have a significant impact on the textile firm’s performance, moreover the moderating effect of leverage was found to be significant on the relationship between BM and performance of textile, but insignificant on the relationship of board size and performance. This study provides helpful information for regulators as well as management of textile firms to enhance policies relating to corporate governance ahead. 


Board Size; Board Meetings; Leverage; Corporate Governance; Performance .

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