The research study aims to identify the Board interlocks impact on firm performance and board diversity role affecting their relationship. For data collection Probability sampling technique has been used. Data of 93 firms from different sectors registered on Pakistan stock exchange has been collected for the time period 2011- 2017. Firm Performance has been measured using return on asset. Board interlocking has been measured using number of interlocks and Board diversity has been measured through board size. Regression and correlation methods have been used for data analysis. Findings of the present study suggests that interlocking directorates have negative and significant effect on firm performance and these interlocks negatively contribute in the operational and managerial performance of the firms. Results also suggest negative association amongst board diversity in turning around board interlocks. Results of the research study can be advantageous and valuable for security exchange commission of Pakistan to upgrade the corporate governance laws and to take necessary measures regarding regulations to empower board of director’s role as supervisor in Pakistanifirms. According to the findings of this research study, Necessary measures can be taken by regulatory Authorities towards maximum number of seats a person can hold as a board of director and formulate policies which can regulate board interlocks among organizations.

Corporate governance, Firm Performance, Board interlocking, Board diversity