Abstract
This research aims to investigate corporate governance effectiveness in the power DistributionCompanies (DISCOs) of Pakistan. To achieve this objective, the study has determined the impact ofCorporate Governance Structure (CGS), CEO Empowerment, External Factors (EFs) and theSkills/Experience of directors on Corporate Governance Effectiveness (CGE). Data was collectedthrough structured interviews by employing purposive sampling technique from 70 professionals whohad served as members of the BoDs of power sector companies of Pakistan. Data was analyzedthrough SPSS using linear regression. The empirical findings depict a significant impact of CGS, CEOEmpowerment and the Skill & Experience of directors on CGE. Whereas, External Factors havesignificant negative impact on CGE. The study has practical implications for the CGE in Pakistan. Thestudy recommends that adopting a robust corporate governance model consisting of two-tier boardsconsisting of BoD and BoM is need of the hour. The BoM instead of individuals such as the CFO, CIAand Company Secretary should report to the BoDs. This mechanism and model of governance willstrengthen the intuitional framework of companies. The top management will have unity ofcommand under the leadership of the CEOs of DISCOs instead of the presently disintegrated anddivided team. The boards' effectiveness will be improved as the BoDs will interact with BoM consistingof the top management of companies.
Keywords: Corporate Governance Effectiveness, Corporate Governance Structure, External Factors,CEO Empowerment.