Corporate Governance and its impact on Performance of Automobile Industry of Pakistan: The Role of Foreigner Members in BOD Wang PeiZhi 1*, a and Muhammad Ramzan 2,b, 1 Dean at School of International Trade and Economics, Shandong University of Finance and Economics, Jinan, China 2 Ph.D. Scholar at Shandong University of Finance and Economics, Jinan, China a sheila_guo1988@hotmail.com, b ramzanmehar7@gmail.com *Corresponding author Keywords: Automobile Industry, Corporate Governance, Firm Performance, and Pakistan Stock Exchange. Abstract. Pakistan’s automobile sector goes through trouble phase from many years; however, from the last half-decade, it reflects as an emerging sector of Pakistan stock exchange (PSX). The research is to explore the relations of foreign representatives' inboard and the firm's performance with the contemplation of outliers' problem. The study draws special attention by focusing on a gap that never been revealed yet. We examined 12 years of annual data with a robust regression model to treat the outliers. The results reported that the foreigners on board are the primary gauge for the remarkable financial performance of the firms. The board size and audit committees showed up with proper accountability in the system. However, the finding for independent directors and institutional investors presented a negative relation with the firm's performance. The findings of this research will be serving as a base for policymakers of the emerging automobile industry of Pakistan for the financial betterment of the companies. 1. Introduction There are many different concepts presented the definition of corporate governance as the process through which the companies are managed and governed. [1] The scholars argue that corporate governance is important for both the boards and the shareowners. Many other definitions have established that the meaning of corporate governance is to control and supervise the company's management or its managerial conduct [2]. One notion of corporate governance is that it creates links between shareholders, boards, and other stakeholders [3]. Accordingly, the performance of the corporations is considered to be an important and vital part of the boards' duties because it relates to the financial resources that are used to achieve the overall aim of an organization. So the governance and well-specified board help the organizations to protect the resources with efficiency and create greater value for the shareholders [4]. All countries in the world set their own governance rules for corporations according to their political, social, and religious needs [5]. Experts said the rules are predefined in white and black, which provides the guarantee that all the rights of the shareholders are protected [6]. There is a large number of countries that have set their own rules for their corporations, and this process became speed up after the American SOX-Act of 2002 [7]. Similarly, the SECP of Pakistan the only government institution that is responsible for corporations' governance in the country. The study objective is to measure the relationship between corporate governance and the firms’ performance. In particular, we are going to explore the relation of foreigner members in BOD with the performance of the firms through a contemplation of the outliers because the outlier problem is common in these types of observation. International Conference on Management Science and Industrial Economy (MSIE 2019) Copyright © 2020 The Authors. Published by Atlantis Press SARL. This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/) Advances in Economics, Business and Management Research, volume 118 288