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