Abstract

This study delves into the intricate relationship between corporate governance (CG), as measured by the Corporate Governance Index (CGI), national governance, and the financial performance of non-financial firms in Pakistan. It assesses CG through three sub-indices focusing on board characteristics, information dissemination, and ownership structure, while financial performance is gauged using market-based indicators like Return on Assets and accounting-based metrics such as Tobin's Q. National governance indicators, covering regulatory quality, accountability, political stability, rule of law, corruption control, and governance effectiveness, are also scrutinized alongside control variables like company size and age. Employing a purposive sampling methodology, non-financial organizations listed on Pakistani stock markets from 2013 to 2022 are examined. The study utilizes both Tobin's Q and return on assets methodologies to compute the dependent variable and adopts a deductive, quantitative approach grounded in positivism to systematically test hypotheses derived from existing literature. Through diagnostic tests and multivariate analysis, the research contributes insights into the integration of national and corporate governance dynamics and their consequential impact on financial performance, offering pertinent policy recommendations for stakeholders.