DefinePK

Abstract

The basic purpose of this research is to investigate the connection between governance at the country level and the firm value of Pakistani firms from 2014 to 2023. This research contributes to the literature by using governance features at the country level instead of firm-specific aspects. In this paper, panel data was analyzed using GMM and HLM. It is concluded from GMM results that quality of governance enhance the value of companies operating in Pakistan. The results of HLM analysis shows that governance quality bring smaller change in the value of firms operating in Pakistan. The findings of this research study have broad implications for businesses, present and potential local and foreign shareholders and investors, management, and governments. The present study's findings demonstrated that governance quality at the national level enhance Pakistani companies' value. This information is also necessary for the local and global potential that stands to benefit from the macro factors. The policy maker must concentrate on country governance for betterment the of firms value.
Kyewords: Pakistan, Firm Value, GMM, Country Governance