Assessing the Efficacy of Financial Management, External Audit Quality on Financial Performance with Interplay of Board of Trustees Vigilance in Public Sector Universities of Pakistan

Abstract

Countries across the board, stakeholders at all levels give more attention, effort, and money to public sector performance assessment and evaluation. Pakistan’s higher education sector is among one which faces multi challenges including financial performance due to limited research in this area. Employing quantitative research approach, this study used cross sectional research design with both the primary and secondary source for data collection using survey and financial report. The study employed a sample of 108 universities from population of public sector universities in Pakistan and used stratified random sampling technique. Ordinary Least Squares (OLS) Regression was exercised to assess the research hypothesis. The study only considers public sector universities, inclusion of private universities may enable researchers to study more in depth and compare the results of each category. Income statement and balance sheet ratios using panel data may be used for more accurate and reliable measurement in future studies. This study seeks to enhance understanding of the relationship of financial management, external audit quality, board of trustees vigilance and financial performance. The study has theoretical and practical implications in the field of management, accounting, and finance which can enhance the financial performance.