Corporate governance and financing choices of firms: a panel data analysis

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Periodical article

Title:	Corporate governance and financing choices of firms: a panel data analysis
Authors:	Kyereboah-Coleman, Anthony Biekpe, Nicholas
Year:	2006
Periodical:	South African Journal of Economics
Volume:	74
Issue:	4
Pages:	670-681
Language:	English
Geographic terms:	Africa Kenya
Subjects:	business organization financial management
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2006.00097.x/pdf
Abstract:	The authors examine how corporate governance indicators such as board size, board composition and CEO (chief executive officer) duality impact on financing decisions of firms in Africa. Panel data covering the five-year period 1999-2003 from 47 listed firms on the Nairobi Stock Exchange (NSE) is used. Analysis is done within the Random-effects GLS regression framework. Findings of the study indicate that firms with larger board sizes employ more debt irrespective of the maturity period and also the independence of a board negatively and significantly correlates with short-term debts. Again, when a CEO doubles as board chairperson, less debt is employed. Thus, the study reaffirms the notion that the governance structure of a firm affects its financing choices. Bibliogr., ref., sum. [Journal abstract]