Relationship Between Corporate Governance, Management Ownership and Capital Structure: Evidence from Pakistan Stock Exchange
International Journal of Business Studies Review
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Title |
Relationship Between Corporate Governance, Management Ownership and Capital Structure: Evidence from Pakistan Stock Exchange
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Creator |
Abdul Saboor, Muhammad Nouman, Ijaz Ahmad,
Abdul Saboor, Muhammad Nouman, Ijaz Ahmad, |
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Description |
This study examines the linkage between corporate governance and company’s capital structure proxy as leverage for 100 non-financial Pakistani companies listed on Pakistan Stock Exchange (PSX) from 2009 to 2013. The corporate governance’s features used for this research comprised of BS (Board Size), BC (Board Composition), CEO/CHAIR Duality, MSH (Managerial Shareholding) and control variable ROA. For appropriate model selection, apply Chow, Breusch Pagan and Hausman test. The results of these three test suggests that best model for this study is Pooled OSL model. Correlation and regression analysis is used to determine relationship between Corporate Governance to Capital Structure. The empirical results show that 36% change in leverage is explained by independent variables of the study. The empirical results of this study show that BS and ROA is negative statistically significant while BC is positive statistically significant to leverage. Furthermore, the results show that the independent variables CEO Duality and MSH are statistically insignificant to Leverage. The average analysis from 2009 to 2013 indicates that these companies followed lower debt policy with larger board size and ROA and pursued higher debt policy with the higher percentage of non- executive directors on the board.
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Publisher |
KUST
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Date |
2018-06-10
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion |
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Format |
application/pdf
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Identifier |
http://intjourbsr.org/index.php/ijbsr/article/view/31
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Source |
International Journal of Business Studies Review; Vol 4 No 1 (2018); 1-12
2521-0068 |
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Language |
eng
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Relation |
http://intjourbsr.org/index.php/ijbsr/article/view/31/23
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