Impact of CEO Duality and Audit Committee on Firm Performance: A Study of Oil & Gas Listed Firms of Pakistan

Abstract

This paper examines the relationship between corporate governance mechanisms and performance of the firm. In this empirical paper, audit committee and CEO duality are taken as corporate governance mechanisms and profit margin and return on equity are taken as a measure of performance of the firm for a sample of 11 listed firms of Pakistan for year 2010-2011. Results reveal positive significant relationship of return on equity and profit margin with audit committee. However, this study could not provide a significant relationship of CEO duality with return on equity and profit of the firm. The findings of study help policy makers in setting of proper policies. The finding also determines the importance of audit committee and CEO duality in terms of profitability.

Keywords: Corporate Governance, Firm Performance, CEO Duality