Abstract

The current study aims to examine the effect of judicial efficiency on firm growth. The study has used a sample of 215 listed firms from non-financial sector of Pakistan Stock Exchange from 2016 to 2019. The study has used panel data analysis for estimation of results, where, the Hausman test support fixed effect better modeled the data. The results of the study showed that judicial inefficiency is inversely related with growth of firms. Such that increase in judicial inefficiency in a particular district court, lower the growth rates of firms operating in that district. In addition, board size, board independence, firm size, leverage and ROA are inversely related with firm growth. On the other side independent audit committee is directly related with firm growth. Shareholders and managers of firms, government as a borrower and as a regulator can take benefit of the results of the study.