Corporate Governance Effect on Ownership and Control in Firms An Empirical Evidence from Pakistan

The paper focuses on Corporate Governance (CG) impact on the ownership and control of firms in Pakistan. It also explores legal protection of managers and investors rights in companies. Corporate Governance is considered as a core element when we talk about economic performance and to enhance investor’s trust. Further on, it defines the structure, methods, control and processes of a company to achieve corporate objectives and targets under transparent strategies. CG enhances maximize shareholder value through transparency and accountability which increased firm’s performance. In this study, a model presented that shows the effect of effective corporate governance mechanism in reducing the ownership and control problem among the organizational members of the company. The technique which used to collect data from the stakeholders of various companies was questionnaire method. The result of the study shows that effective corporate governance mechanism is the best practice to reduce the ownership and control problems in the organizations. The clear company policies and objectives are also the major contributor in reducing the principle agent problem in the firms.