Impact of Shareholders’ Activism on Governance Practices and Firm Performance in Pakistan: A Response for Family Controlled Firms

Abstract

By taking a sample of 150 non-financial firms listed on PSX, this study has empirically examined the impact of ownership structure on firm performance while considering multiple dimensions. This study employed the system GMM econometric technique to examine the association between ownership structure and firm performance. According to the computed results of the study, family ownership puts a positive and highly significant impact on the market performance of the firm. It has also found a strong and significant relationship between family control and the market value of a firm. Similarly, group affiliation and market performance of the firm have a strong and significant association but in a negative direction. Institutional ownership is significantly related to the accounting and market performance of the firm. Moreover, the joint impact of institutional and family ownership is positively and significantly related to the accounting performance of the firm. Finally, institutional activism is positively and significantly related to the accounting performance of the firm.

Energy, Communication, Health, Irrigation and Security Infrastructure and its impact on Household Poverty in Pakistan: A Case Study of District Rajanpur, Punjab

“…The economic justification of the result is that law and order condition largely affect the business activities in any area. If law and order/ security situation is trust-worthy then trust level of business firms usually increase so participation in business activities also increases that may be a source of more job opportunities and so reduction in level of poverty occurs (Amjad, Ehsan, Amjad, & Gillani, 2021).…”

Self-Efficacy as a function of Work Engagement with the mediating role of Organizational Trust in Higher Educational Institutions.

“…As every individual has different kinds of skills, capabilities, cognitions and attitudes, the organizations have to inculcate such environment that this high workforce diversity may easily be encountered in their structure (Jayachandran et al, 2021). The study illustrates that the employees must have their skills such that they can easily cope them up in such diverse cultural norms of the organization and enhance their performance under such diversified environment (Amjad, Ehsan, Amjad, & Gillani, 2021;Jayachandran et al, 2021). Güzide (2021) in their research study highlight that self-efficacy is a sign of difference among cognitive, imaginative and attitudinal norms of the people working in any organizational setting.…”

Insider Trading Laws and Corporate Governance Impact on Investment Decision

“…Further, Kahneman and Tversky (1979) in their prospect theory of decision making under uncertainty tried to explain the psychological behavior of the investor where they suggest that investors are risk averse and they only focus about the gain and return, if they see more risk or foresee the potential loss they quit, and which ultimately impact the stock prices of the security or instruments. This because their financial behavioral biases and behavior therefore firms with lack of good corporate governance not only fails to attract the potential investors but also lost their existed investor (Amjad, Ehsan, Amjad, & Gillani, 2021;Bhatti & Fazal, 2020).…”