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.