Essay --

Manufacturing sector is the triplet largest sector of Pakistan after service and agriculture. It is playing a vital purpose in the economy of Pakistan the 18.7% GDP of Pakistan is contributed by manufacturing sector (Ministry of finance, 2012). However, due to contemporaneous forces of globalization, technological changes and changing customers demands for better quality, this important sector of Pakistan is now facing intense competition. Corporate administration is the main discover to survive in this turbulent environment. According to Shleifer and Vishny(1997), corporate governance is the controlled instrument which protects the interest of investors by handlingagency problems. In other words, corporate governance is the organization of check and balances on management actions (Larcker, 2011). A number of studies provided the evidence amidst license and self-command construction and firm performance. But the results are motley and cannot be generalized. For instance, several studies stated that opportunistic actions can be interpreted due to privileged information in case of stock ownership (Yermack, 1997 Bartov and Mohanram, 2004). And many 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). coarse research work has been done on linkage of corporate governance structure with firm performance and capital structure, particularly, in developed countries. However, thither has been modest research on the influence of corporate governance variables such as board independence, audit committee independence, managerial... ... annual reports of respective companies. otherwise financial data is collected the Balance Sheet Analysis of correlative Stock Companies Listed at Karachi Stock Exchange published by stir B ank of Pakistan. Data for share price were collected through from website of KSE. 3.3. question models and methodologyFollowing equations are to be mental 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 measured 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 beautify type, so we used panel data estimation methods. Fixed effects model is used to test the relationships.