Firm Performance Theory Development 1. Agency Theory

36 performance in Pakistan. Positive relationship between corporate governance and firm performance has been observed Cheema and Din, 2003. 2. Impact of family involvement in ownership managementand direction on financial performance of the Lebanesefirms Salloum Charbel, Bouri Elie, Samara Georges, 2013. This research is purposed to understand better how family involvement in ownership management and direction affects the financial performance of the Lebanese companies. In order to authenticate our hypotheses, we collected primary data by using a quantitative method. In fact, we performed an inquiry by surveying 75 Lebanese companies listed companies in the Beirut Stock Exchange 2012 through a questionnaire formed by closed and semi-open questions and modulators. Research model parameters estimated using statistical package for the social science using Spearman test of correlation through the SPSS program. This study use independent variable, they are family involvement in ownership management and entrenchement and asymmetric altruism, and dependent variable using return on asset ROA and earning before interest taxes EBIT. While finishing the empirical study, we concluded that family involvement in ownership and management has a positive relationship with the financial performance of the Lebanese company. Moreover, issues like entrenchment and asymmetric altruism did not prove to have a significant relationship with the financial performance. The essential reason to the results previously stated is that family managers in Lebanon act as stewards by considering 37 the success of the company as their own, rather than agents seeking to achieve their personal benefit on the expense of the company Charbel and Georges 2013. 3. The Impact of Board Size on Firm Value: Evidence from The Asian Real Estate Industry Josephus P. Weterings and Dirk M. Swagerman, 2011. This study examines the impact of board size on firm value as measured by Tobin’s Q for a sample of 155 ordinary property firms and real estate investment trusts REITs listed in Hong Kong, Malaysia and Singapore. This study use independent variable, they are boa rd size, market cup and debt equity. And toni’s q as dependent variable. This section provides OLS regression result from the main samples. In contrast with findings of prior research, researcher presents evidence for a positive relationship between board size and firm value for listed ordinary property firms. Results on REITs are not significant because of limited sample size. Results are robust to a number of controls including firm size and leverage Wetering and Swagerman 2011. Limitation of this study include, among others, endogeneity of variables, limited sample size and the time frame of my dataset. 4. Ownership Structure, Corporate Governance And Firm Value: Evidence from Chinese Listed Companies Jenny Jung-wha Lee and Zhihua Zhang, 2010 This research investigates the effects of ownership structures and corporate governance on firms’ performances in the Chinese capital market, which is in the early developmental stage of a socialist market economy. First, we examined 38 companies that issued A stock listed on Shanghai and Shenzhen Stock Exchanges from 2004 –2007 to analyze the effects of various facets of ownership structures and corporate governance on firm’s values. Second, we examined the firms’ performances under varying proportions of state ownership to examine the impact on ownership structures and corporate governance. This study use independent variable, they are oenership structure, government structure, as depenent variable using return on asset ROA and tobin’s Q also firm size, leverage and growth ratio as control variable. To examine the impact of corporate governance on firm performance using regression model analysis. Largest shareholder ownership, and managerial ownership were found to negatively affect the firms’ value and board members and institutional ownerships were found to positively affect firms’ values. We also examined the effect of interactions between firms’ performances and corporate governance structures on board independence and the existence of audit committees on the valuation of firms with high performance values Lee and Zhang 2010. There are several limitation of this study. Our measure tobin’s q is limited in the evaluating the market vale due to the nontradable shares. In relation to corporate governance measurement, we need to develop the index for the overall corporate governance variables. 39 Table 2.1 The Relevan Previous Research No. Researcher Year Title Variable Result Summary Similarity Difference 1. Khaliq Ur Rehman Cheema and Muhammad Sadat Din 2013 Impact of Corporate Governance on Performance of Firms: A Case Study of Cement Industry in Pakistan Variable: board size, family controlled firms, firm performance Variable: CEO duality, Sample : data of fifteen companies of the cement industries of Pakistan including family and non- family Period: period of 2007 to 2011. The researcher found that CEO duality is negatively and significantly related to cement industry performance, as the performance indicator for firm is EPS. Family and non-family firms has also impact on cement firm’s performance. Its shows that board size do not affect the performance of a firm. 2. Salloum Charbel, Bouri Elie, Samara Georges 2013 Impact of family involvement in ownership managementa nd direction on financial performance of the Lebanese- firms Variable: family involvement, firm performance Variable: asymmetric altruism. Sample: Used 75 Lebanese companies family firms, none family firms, and listed companies in the Beirut Stock Exchange Period: 2012. Method: Spearman test. The result showed that entrench-ment and asymmetric altruism did not prove to have a significant relationship with the financial performance.