Document Type : Research Article


1 Professor, School of Finance & Economics, Jiangsu University, Zhenjiang, 212013, People’s Republic of China

2 Ph.D. Scholar, School of Finance & Economics, Jiangsu University, Zhenjiang, 212013, People's Republic of China

3 Assistant Professor, Department of Commerce, University of Kotli Azad Jammu and Kashmir, Kotli, Pakistan

4 Assistant Professor, Management Sciences Department, National University of Modern Languages, Lahore campus, Pakistan

5 Assistant Professor, Department of Business Administration, University of Sahiwal, Sahiwal 57000, Pakistan


Everywhere around the globe, family companies are a prominent and quite sound identity. Dominant families have a solid motive for extracting personal advantages through minority shareholder resource exploitation and indulging in lessening the shareholders' wealth, especiallyin developing countries. An effective governance system guards against these activities while still influencing long-term results by eliminating these. This analysis broadens this focus by exploring the impact of independent directors, board scale, leverage, dividend delivery, and firm size on financial performance in Pakistani listed family-owned businesses. Secondary data from released annual reports and governance practices reports was used to analyze 212 family-owned firms from 2010 to 2017. Throughout this analysis, the static or dynamic models: fixed - effects (FE), random effect (RE), and generalized form of the moment (GMM) are important measurement methods. The findings indicate that board independence positively impacts firm financial efficiency, suggesting that governance is successful in family businesses. In contrast, board size has a negative impact on the performance of a firm, offering ineffective governance. Finally, the study includes governance suggestions for lenders as well as all other stakeholders