MACMILLAN Corporate Governance and Organisational Performance: The Impact of Board Structure

Establishing a corporate governance strategy that promotes the efficient use of organisational resources is instrumental in the economic growth of a country, as well as the successful management of firms.  This book reviews existing literature and identifies board structural features as key variables of an effective corporate governance system, establishing a multi-theoretical model that links Board structural characteristics with firm performance. It then, using a comprehensive empirical study of 265 companies listed on the Karachi Stock exchange, tests this conceptual model. This research serves as a significant milestone, reflecting the socio-economic setting of emerging economies, and highlighting the need for the corporate sector in emerging markets to move away from a 'tick-box' culture. It argues that the sector needs to implement corporate governance as a tool to mitigate business risks; appoint and empower non-executive directors to achieve an effective monitoring of management; and establish their own ethical and governance principles, applicable to the Board of Directors. Based on an extensive data base, collected painstakingly over five years, this book offers new insights and conceptual framework for further research in this area. Given the breadth and width of the research, it is a useful source of future reference for students, researchers and policy makers.  Review Based on research that won the 'Brunel University VC award' for best thesis of the academic year 2017-2018. Review “In today’s complex and fast-moving business world, corporate governance practices are crucial for navigating change and managing new risks. Research continue to show the positive impact that governance mechanisms can have on business competitiveness. This thought-provoking book offers valuable insights on the link between governance and organizational performance, while it highlights best practices that can easily be implemented by Boards.” ―  H.E. Hamad Buamim, President & CEO, Dubai Chamber of Commerce & Industry, Dubai, United Arab Emirates “This methodologically sophisticated and controversial study disputes the correlation between good corporate governance and financial performance in a pioneering study of Pakistan. Tick-box compliance cultures turn out to have little value compared to long-term strategies to create value.” ― Geoffrey Jones, Isidor Straus Professor, Harvard Business School, Boston, USA “Corporate Governance and Organizational Performance - The impact of Board Structure is a timely piece of research conducted with an extensive and in-depth analysis of data base of listed companies in Pakistan. The research is also of critical contemporary relevance to fellow emerging economies around the world that share similar political, economic, social, technological, and legal setups with Pakistan. Several of these economies are vying to be a major player in their respective regions. Lesson this research imparts is that companies that diligently apply the principles of corporate governance in all fairness and transparency have the potential to outperform rivals. The study highlights how a Board is structured and conducts, influences the market value of companies. This in turn inspires investors’ lending and investing decisions. Policy recommendations of the study are that a corporate sector comprising of companies that implement the code of conduct of good governance, both, in letter and spirit could be the future of Pakistan vis-à-vis emerging economies.” ― Rizwan Sayed, Tax Director – PWC London, former Sr. VP Faisal Islamic Bank, Bahrain “We know that good corporate governance is fundamental to organizational success, yet why is this the case? Moreover, articulating what makes the difference and why is less clear, until now. This book seeks to distil the wealth of wise commentary about why good corporate governance matters into a tangible evidence base. I will be