Do multi-nationality and board attributes matter for firm value: evidence from non-financial listed firms of Pakistan
Keywords:
Multinational firm, CEO duality, Board size, Board independence, Firm valueAbstract
This study used the panel data of 189 firms listed on the Karachi Stock Exchange of Pakistan from 2010 to 2019. This study employed the ordinary least square method for estimation. The findings of this study suggest that multinational firm is positive whereas non-multinational firm is negatively related to firm value. This may be due to multinational firms being more advanced in technology and management expertise. Among board attributes (i.e. CEO duality, the board size, and board independence) only board size has a significant impact on firm value of the multinational and non-multinational firms. Board size is positively related to the firm value of a multinational firm and negatively related to the value of a non-multinational firm. This finding suggests that number of directors on the board depends on the management expertise required of the firm. Board independence is negatively related to the firm value of the multinational firm. Among control variables, return on assets, dividend payment, and the debt ratio are positively related to the firm value whereas interest payment is negatively related to the firm value.
https://doi.org/10.5281/zenodo.10256385
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