Impact of Corporate Governance on Firm Performance with Moderating Role of Leverage: A Study of Non-Financial Listed Firms on Pakistan Stock Exchange

Abstract

This study investigates the moderating role of leverage in the link between corporate governance variables and business performance using data from non-financial companies registered on the Pakistan Stock Exchange for the years 2018–2023. The findings show that performance is much enhanced by board size, independence, and experience, with firm size also having a substantial impact. As a moderating variable, leverage has a direct negative influence on performance, but it also mitigates the effects of governance variables like company age, board independence, and board meetings. The study emphasizes how crucial sound corporate governance is, as well as how leverage plays a complicated moderating role in influencing business performance. These results offer valuable perspectives for scholarly investigations and business operations in developing economies such as Pakistan.