Governance Indicators and Firm Value: Evidence of Non-Sharia Compliant firms from Pakistan

The underpinning objective of current study is to test the indicators of corporate governance on the firm value of non-Shariah compliant firms on listed firms on Pakistan Stock Exchange. The current study considered the corporate governance indicators ownership structure (family ownership, concentrated ownership, and foreign ownership), business structure (pyramidal group), board structure (board independence, board size, and CEO duality). Total 526 companies were listed on the Pakistan stock exchange out of which 196 companies were categorized as non-Shariah compliant firms and considered under study for the period of 2009-2018. The findings of current study reveal that ownership structure significantly linked with firm value (family ownership (-), concentrated ownership (+), and foreign ownership (+)). The business structure indicates a positive and significant relationship with pyramidal group (+). However, in case of board structure board independence indicate an insignificant but positive relationship, board size indicates a negative and significant, and CEO duality indicates a positive and significant relationship with firm value. The findings of current the findings of current study were aligned with the literature however, literature reveals that Shariah compliant firms have different results.