Impact of Capital Structure, Corporate Governance, and Firm Size on Firm Performance in Emerging Markets

Abstract

This paper has analyzed how the capital shape, company governance and the scale of the company have an effect on the overall performance of publicly indexed corporations in Lahore, Pakistan. The have a look at become primarily based totally on 50 corporations the use of secondary facts supplied in 2018-2023 and investigated the hyperlinks among the debt-to-fairness ratio, board independence, the presence of the audit committee, the dimensions of the corporation, and the profitability indicators (ROA and ROE). The proposed relationships had been examined the use of descriptive statistics, correlation evaluation and a couple of regression evaluation. The findings screen that a slight leverage has a incredible contribution to enhancing company overall performance and an powerful company governance mechanism which include unbiased forums and useful audit committees has a effective effect on profitability. Firm length did now no longer have the sort of great impact and it's far feasible to mention that organizational scale isn't always a substantial determinant of overall performance. These effects suggest how vital the monetary and governance techniques are in improving the overall performance of companies withinside the rising marketplace surroundings in Pakistan. The studies advises businesses to make sure that they have got an top of the line degree of capital shape and decorate suitable governance practices which will achieve sustainable profitability.