Unveiling the Link between Corporate Board Attributes, Board Behavior, and Financial Leverage: Insights from Malaysia

Author:

Tahir Hussain1ORCID,Rahman Mahfuzur2ORCID,Masud Md.3ORCID,Rahman Mohammed4

Affiliation:

1. Department of Management Sciences, Muhammad Nawaz Sharif University of Engineering and Technology, Old Bahawalpur Road, Qasim Pur Colony Qasimpur Colony, Multan 60030, Pakistan

2. Department of Finance and Economics, College of Business Administration, University of Sharjah, Sharjah 27272, United Arab Emirates

3. Department of Business Administration, Noakhali Science and Technology University, Noakhali 3814, Bangladesh

4. Department of Accounting and Information Systems, Comilla University, Cumilla 3506, Bangladesh

Abstract

The aim of this paper is to examine the characteristics and conduct of boards in non-financial Malaysian firms, with a particular emphasis on the companies’ financial leverage, using panel data spanning from 2012 to 2018. Overall, the study reveals that the relationship between board attributes and a firm’s financial leverage is significant, but mixed. Notably, we find that extremely small or large boards are ineffective in maintaining the optimal financial leverage level that benefits all stakeholders. Our study concludes that board independence is negatively correlated with financial leverage, whereas the tenure of board members is negatively associated with financial leverage. Additionally, board diversity exhibits a statistically significant and positive correlation with financial leverage. Currently, the Malaysian corporate governance code advocates announcing regulations to regulate corporate structures.

Publisher

MDPI AG

Subject

Finance,Economics and Econometrics,Accounting,Business, Management and Accounting (miscellaneous)

Reference70 articles.

1. Corporate Governance and dividend payout policy: Mediating role of leverage;Abbas;Pakistan Journal of Social Sciences,2018

2. The influence of board size on intellectual capital disclosure by Kenyan listed firms;Abeysekera;Journal of Intellectual Capital,2010

3. Investment opportunities, corporate finance, and dividend payout policy;Abor;Study on Economic Finance,2010

4. Does corporate governance explain dividend policy in Sub-Saharan Africa?;Abor;International Journal of Law and Management,2013

5. Adams, Renée, and Mehran, Hamid (2003). Board Structure, Banking Firm Performance and the Bank Holding Company Organizational Form, Federal Reserve Bank of Chicago. Federal Reserve Bank of Chicago Proceedings No. 866.

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3