Corporate Governance and its Effect on Decision Making of the Firm

This study has been done to investigate the effect on the performance of an organization decisions and here we discuss some factors such as ownership concentration, board size, and managerial ownership, outside directors, director remuneration and CEO duality affect capital stricture choices with in the firm. Corporate governance is a system in which we can give proper rights to the departments of the firm with an equal and the requirement of that individual department and the division of resources is according to their responsibilities through which the effectiveness and productivity is also increase. The result suggested that outside directors and board size and ownership concentration have a positive impact on the total debt ratio and long term ratio but have negative effect upon director remuneration and managerial ownership on the long term debt ratio. Variables such as profitability and liquidity are negative impact at long-term debt ratio, where the size of an organization has positive effect on it. Tangible asset has positive impact on long-term debt ratio and negatively related to the total debt ratio. We know that developing countries have week internal and external corporate governance implementations as compare to developed countries Keywords: CG, Capital Structure, CEO Duality, Managerial Ownershi