Does Governance Quality Enhance Stock Market Performance: Empirical Evidence from Pakistan


  • Ahsan Aslam Khan PhD Scholar, Universiti Utara Malaysia, Malaysia
  • Farzana Munir Assistant Professor, School of Economics Bahauddin Zakariya University Multan, Pakistan
  • Javaria Abbas Institute of Management Sciences, Bahauddin Zakariya University, Multan Pakistan
  • Muhammad Umar PhD Scholar, Universiti Utara Malaysia, Malaysia



Governance, Stock Market Performance, ARDL, Pakistan


The current study examined the impact of governance on stock market performance in Pakistan. The study employed the ARDL model using Pakistani data with complete relevant data for the period spanning from 1996 to 2018. The study reveals that quality of governance as captured by voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, the rule of law, and control of corruption positively affect stock market performance. The findings suggest countries with better developed political systems would favor stock markets with higher market capitalization, better turnover ratios, higher value in shares traded, and a greater number of listed companies.


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How to Cite

Khan, A. A. ., Munir, F. ., Abbas, J. ., & Umar, M. (2022). Does Governance Quality Enhance Stock Market Performance: Empirical Evidence from Pakistan. Review of Applied Management and Social Sciences, 5(2), 207-217.