ARTICLE

CORPORATE GOVERNANCE AS A DETERMINANT OF STOCK PRICE SYNCHRONICITY EMPIRICAL EVIDENCE FROM PAKISTAN

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20 Pages : 289-304

http://dx.doi.org/10.31703/grr.2017(II-I).20      10.31703/grr.2017(II-I).20      Published : Dec 2017

Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan

Abstract

    The objective of this study is to investigate the association of investor protection (IP) and stock price synchronicity (SPS). Based on the theory that a strong IP reduces information asymmetry (IA) and enhances the quality of firm fundamental information through disclosures of annual reports. Such information is then considered for investment decisions. SPS is measured by Co-movement of majority of share prices in either direction in a stock market, while IP is proxied by Size of the Board of Directors, ratio of the independent directors to total size, and audit committee. Data has been downloaded from State Bank of Pakistan, Companies web sites, and Pakistan Stock Exchange for the period 2010-17. Using panel data analysis techniques, results show that IP and SPS are negatively related. These findings suggest that companies with strong IP help in reducing IA and thus increase the use of FFIs for investment purposes.

    Stock Price Synchronicity, Corporate Governance, Investor Protection, Board Size, Independent Directors, Audit Committee, Disclosure

    (1) Adnan Ahmad
    Assistant Professor, IBL,Abdul Wali Khan University Mardan, KP, Pakistan.
    (2) Humera Manzoor
    Assistant Professor,IMS,Kohat University of Science and Technology, Kohat, KP, Pakistan.
    (3) Muhammad Ibrahim Khan
    Assistant Professor, IBL,Abdul Wali Khan University Mardan, Mardan, KP, Pakistan.
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Cite this article

APA

    APA : Ahmad, A., Manzoor, H., & Khan, M. I. (2017). Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan. Global Regional Review, II(I), 289-304. https://doi.org/10.31703/grr.2017(II-I).20

CHICAGO

    CHICAGO : Ahmad, Adnan, Humera Manzoor, and Muhammad Ibrahim Khan. 2017. "Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan." Global Regional Review, II (I): 289-304 doi: 10.31703/grr.2017(II-I).20

HARVARD

    HARVARD : AHMAD, A., MANZOOR, H. & KHAN, M. I. 2017. Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan. Global Regional Review, II, 289-304.

MHRA

    MHRA : Ahmad, Adnan, Humera Manzoor, and Muhammad Ibrahim Khan. 2017. "Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan." Global Regional Review, II: 289-304

MLA

    MLA : Ahmad, Adnan, Humera Manzoor, and Muhammad Ibrahim Khan. "Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan." Global Regional Review, II.I (2017): 289-304 Print.

OXFORD

    OXFORD : Ahmad, Adnan, Manzoor, Humera, and Khan, Muhammad Ibrahim (2017), "Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan", Global Regional Review, II (I), 289-304

TURABIAN

    TURABIAN : Ahmad, Adnan, Humera Manzoor, and Muhammad Ibrahim Khan. "Corporate Governance as a Determinant of Stock Price Synchronicity: Empirical Evidence from Pakistan." Global Regional Review II, no. I (2017): 289-304. https://doi.org/10.31703/grr.2017(II-I).20