Impact of corporate governance on capital structure of Pakistani firms
Document Type
Conference Proceeding
Publication Title
The proceedings of 2nd Business Doctoral and Emerging Scholars Conference
Publisher
Edith Cowan University - School of Business and Law
School
School of Business and Law
RAS ID
27443
Abstract
The purpose of this study is to empirically test the impact of corporate governance measures on the capital structure choices of oil and gas industry of Pakistan. Pooled Ordinary Least Square Model was employed to test the data is collected from PSE-30 index form 2006-2015 from their published annual reports. The results showed that number of committees at the board are positively and significantly associated with the financing decisions of the firms. However, board independence showed a negative but insignificant relation with the leverage ratio. Other explanatory variables showed no relation with the financing decisions. The control variables firm age and firm size are positively while profitability and shareholder equity are significantly but negatively related with the leverage ratio. The findings of this study will help corporate managers in the formulating the optimal capital structure. This study is significant for the policy makers to make new regulations to work more effectively in the corporate governance sector of Pakistan. It will also fill the gap of available literature on corporate governance in Pakistan.
Access Rights
free_to_read
Comments
Shakri, I.H., Yong, J., Xiang, D., & Djajadikerta, H. (2017). Impact of corporate governance on capital structure of Pakistani firms. In Proceedings of the 2nd Business Doctoral and Emerging Scholars Conference (pp. 57-63). Edith Cowan University.
http://www.ecu.edu.au/__data/assets/pdf_file/0008/769886/2nd-Business-Doctoral-and-Emerging-Scholars-Conference_Proceedings.pdf