Corporate Governance as a Bridge: Examining the Impact of Political Intervention and Managerial Autonomy on Firm Performance in Pakistan
DOI:
https://doi.org/10.55737/trt/FL25.154Keywords:
CGMS’s, Political Intervention, Managerial AutonomyAbstract
This study looks into the combined impact of the political intervention and managerial decision-making autonomy towards firm performance within the high politically volatile countries and environments, such as Pakistan, spotlighting the mediating role of corporate governance mechanisms (CGMs) in this relationship. While previous research has examined these factors solely, this study combined them into a mediation model to give an empirical stance using data collected from 175 firms through a questionnaire that targets managerial and top managerial staff. Findings of this research paper reveal that political intervention has a highly significant adverse impact on firm performance, both directly and indirectly, after weakened CGMs. Data was analyzed on SPSS through various tests, such as descriptive analysis, normality test, reliability, multiple regression, and Andrew F Hayes Process Model 4, for the purpose of testing mediation, and then Spearman correlation. In addition, managerial autonomy shows a positive impact, with CGMs fully mediating its relationship with firm financial performance. The results support the basis of the agency theory, resource dependency theory, and strategic choice theory, showing that good governance structures have the ability to reduce the negative impacts of political intervention and effects while increasing the advantages of managerial decision-making autonomy. This study offers theoretical contributions to corporate governance mechanisms, literature, and practical implications for leaders and policymakers of corporate entities aiming to improve firm performance outcomes in developing economies.
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Copyright (c) 2025 Soban Ali, Dr. Ashfaq Ahmad, Fahad Asghar, Salma Elsetouhy
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