Managerial Commitment towards Shareholder’s Value: An Empirical Study on Listed Cement Firms of Pakistan

This research study establishes a relationship among shareholder’s value, board size and board composition. This study is conducted on the cement sector of Pakistan. The balance sheet analysis is done and Market Value Added is used to measure the shareholders’ value. The results show that the independent variables, board size and board composition (non-executive directors) have a negative relationship with the dependent variable, Shareholders’ value. This shows that with the increase in the number of non-executive directors and the board size, the board does not remain efficient and well informed and hence the shareholders’ value decreases. The regression analysis depicts that the impact on the shareholders’ value caused due to the board composition (non-executive directors) and the board size is up to 10%. Keywords: Shareholders’ Value, Board Size, Board Composition, Market value added