4.

Scope of Study

This study investigates the impact of corporate governance (CG) on the cost of equity (COE) in cement
sector’s enterprises, listed on Pakistan stock exchange for a sample period of 2012–2017. To
overcome the agency problem, there are two practical methods, one is the incentive mechanism,
and the other is a monitoring mechanism. These two methods are used to align the interest of agents
with that of principals (Denis, 2001).

5.Dependen variable

Cost of equity (COE) and Capital Asset Pricing Model (CAPM).

6.Independen variable

blocked ownership, insider ownership, board ownership, female directors, CEO duality, NEDs and tenure