Essay --

Manufacturing empyrean is the third largest sector of Pakistan after service and agriculture. It is playing a vital role in the economy of Pakistan the 18.7% GDP of Pakistan is contributed by manufacturing sector (Ministry of finance, 2012). However, due to contemporary forces of globalization, expert changes and changing customers demands for better quality, this important sector of Pakistan is today facing intense competition. Corporate governance is the main key to go away in this turbulent environment. According to Shleifer and Vishny(1997), corporate governance is the controlled mechanism which protects the disport of investors by handlingagency problems. In other words, corporate governance is the system of jib and balances on management actions (Larcker, 2011). A number of studies provided the evidence between license and self-control building and firm performance. But the results are mixed and cannot be generalized. For instance, several studies stated that opportun istic actions can be taken due to privileged information in case of stock ownership (Yermack, 1997 Bartov and Mohanram, 2004). And some(prenominal) other studies suggest that managerial ownership increases the shareholder wealth by removing the agency problem. Similarly, the results of the literature focusing on linkage of independence and ownership structure with capital structure are mixed (Krishnamoorthy&Maletta, 2012 Larcker, 2011). Considerable research work has been done on linkage of corporate governance structure with firm performance and capital structure, particularly, in developed countries. However, there has been tame research on the influence of corporate governance variables such as board independence, audit committee independence, managerial... ... annual reports of respective companies. Other pecuniary selective information is collected the Balance Sheet Analysis of Joint gillyflower Companies Listed at Karachi Stock Exchange published by State bank of Pakis tan. Data for share price were collected through from website of KSE. 3.3.Research models and methodologyFollowing equations are to be testedEPSit = 0 + 1BIit+ 2ACIit+3OCit+4MOit + itEq. 01MBit= 0 + 1BIit+ 2ACIit+3OCit +4MOit + itEq. 02DRit = 0 + 1BIit+ 2ACIit+3OCit +4MOit+itEq. 03Where firm performance either metrical by MB or EPS. MB is Market to Book Ratio, EPS is Earnings per Share andcapital structure is measured by debt ratio,0 is the intercept, 1, 2, 3 and 4are regression slope coefficients. As data used for study is of panel type, so we used panel data estimation methods. Fixed effects model is used to test the relationships.