Effects of CG Practices on Firm’s Performance: A Study of Stock Exchange Listed Companies

The present study is conducted in order to determine Relationship between Management Efficiency and Corporate Governance. The main purpose of the financial management is focused on maximizing the shareholder’s wealth. The conflict of interest among shareholders and managers can lead to the abnormal behavior of the managers which is mostly directed toward their own interest not the institutional owners of the firm. This is finally effective on the management efficiency. In doing so, the findings reveal that institutional shareholders and non-executive members of the board are significantly related to the management efficiency. This relationship is not the same as the two other mechanisms of the corporate governance.