摘要：The study was proposed to test the relationship between firm performance with size, growth, tax, and business risk. Considering the sample of 60 listed companies from Pakistan and China for a period of seven years spanning from 2007-2013 thereby making 420 observations. Random and Fixed effect panel regression was run based on Hausman specification test on pooled and country-wise data. Tobin’s Q and return on assets (ROA) were taken as dependent variables as indicators of firm performance. The data was tested for multicollinearty and its absence was concluded. However, Breusch-Pagan and Wooldridge tests confirmed presence for Heteroscedasticity and autocorrelation, respectively. Thus the regressions were run with the option of Newey-West standard errors. The study has found ROA has greater average for Chinese companies, which indicate that Pakistani companies have low accounting performance as compared to Chinese firms. Results also show that China has higher growth rate. The panel data regression elucidated that size, growth opportunity and business risk have significant positive effect over firm performance in both countries’ firms. On the other hand, tax had negative effect over performance but the relationship was not statistically significant.
关键词：Firm performance; Return on Asset; Panel data; China; Pakistan
