Constraints and Barriers in Corporate Governance and Managerial Efficiency: A Comparative Analysis

Abstract

The focus of this study is to investigate the constraints and barriers in managerial efficiency of corporate sector in Pakistan, not only for the better results of the corporate but also for the whole economy. A comparison of Pakistani corporate sector is made with 32 low income countries. Corruption, crime, gender, finance, infrastructure, innovation of technology, are the major constraints for managerial efficiency of corporate sector in low income countries elaborated in this study.  Different dimensions of each variable are used to compare level of severity of constraints in different countries. Pakistan, as a whole, is comparatively bearing a low ratio of these hindrances as compared to remaining third world countries but these constraints need attention not only to increase the managerial efficiency of corporate sector in Pakistan but also for the whole economy. This study is contribution to literature regarding the implementation of healthy corporate governance in Pakistan as compared to same economies and suggests the constraints and barriers to avoid default period of the corporate and less efficiency of economy. Furthermore, it helps us to trace the major key factors regarding the implementation of healthy corporate governance to increase managerial efficiency of the corporate because it is not the Government that helps corporate to implement corporate governance effectively but corporate itself can do it effectively. The data is collected by using the secondary sources and World Bank is used as a data source to compare Pakistani corporate sector with low income countries. The results suggest that Pakistan is bearing fewer ratios of all variables as compared with other country variables that shows that Pakistani corporate sector can easily overcome these constraints if there will be proper implication of proper corporate governance.

Keywords: Constraints, Barriers, Pakistan, Corporate Governance