The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari

Corporate governance becomes actively debated over the last decade in analysing the influences on the company's financial decision. Good corporate governance practices possibly will have significant influence in making strategic decisions especially on financial structure of the company, that a...

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Main Author:	Juhari, Zuria
Format:	Thesis
Language:	English
Published:	2015
Subjects:	Financial management Business finance Corporation finance
Online Access:	https://ir.uitm.edu.my/id/eprint/82978/1/82978.pdf
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id	my-uitm-ir.82978
record_format	uketd_dc
spelling	my-uitm-ir.829782023-09-15T03:14:08Z The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari 2015 Juhari, Zuria Financial management. Business finance. Corporation finance Corporate governance becomes actively debated over the last decade in analysing the influences on the company's financial decision. Good corporate governance practices possibly will have significant influence in making strategic decisions especially on financial structure of the company, that are taken by board of director. As a result of financial structure decision, there has been an existence of agency conflicts between ownership and management team. Agency theory suggests that there should have a separation of control between principal and agent, so that agent will act on behalf of principal in managing company's resources. Therefore, corporate governance is used as an important tool to mitigate this agency costs. Ordinary Least-squares (OLS) regression is used to investigate the influence of corporate governance variables on company's financial structure decision. The variables of corporate governance mechanisms measures in this thesis are board size, directors' remuneration, CEO duality, tenure of CEO and institutional ownership, while control variable represented by firm size. In addition, financial structure is measured by debt to equity ratio. The main objective of this thesis is to examine the type of financial structure decision among Malaysian companies whereas the second objective is to investigate the relationship between corporate governance mechanisms and financial structure. The results indicate that directors' remuneration has a positive significant relationship with financial structure decision for Malaysian companies. Board size, CEO duality, CEO tenure, and institutional ownership have positively insignificant relationship with the financial structure of the company in Malaysia. Firm size as a control variable used in this thesis has a significant relationship with the financial structure decisions. Overall, most of Malaysian companies prefer to use debt to finance company's operation rather than equity issuance. Keyword: Financial Structure, Corporate Governance, Debt to Equity, Bursa Malaysia. 2015 Thesis https://ir.uitm.edu.my/id/eprint/82978/ https://ir.uitm.edu.my/id/eprint/82978/1/82978.pdf text en public masters Universiti Teknologi MARA, Sabah Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Financial management Business finance Corporation finance
spellingShingle	Financial management Business finance Corporation finance Juhari, Zuria The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
description	Corporate governance becomes actively debated over the last decade in analysing the influences on the company's financial decision. Good corporate governance practices possibly will have significant influence in making strategic decisions especially on financial structure of the company, that are taken by board of director. As a result of financial structure decision, there has been an existence of agency conflicts between ownership and management team. Agency theory suggests that there should have a separation of control between principal and agent, so that agent will act on behalf of principal in managing company's resources. Therefore, corporate governance is used as an important tool to mitigate this agency costs. Ordinary Least-squares (OLS) regression is used to investigate the influence of corporate governance variables on company's financial structure decision. The variables of corporate governance mechanisms measures in this thesis are board size, directors' remuneration, CEO duality, tenure of CEO and institutional ownership, while control variable represented by firm size. In addition, financial structure is measured by debt to equity ratio. The main objective of this thesis is to examine the type of financial structure decision among Malaysian companies whereas the second objective is to investigate the relationship between corporate governance mechanisms and financial structure. The results indicate that directors' remuneration has a positive significant relationship with financial structure decision for Malaysian companies. Board size, CEO duality, CEO tenure, and institutional ownership have positively insignificant relationship with the financial structure of the company in Malaysia. Firm size as a control variable used in this thesis has a significant relationship with the financial structure decisions. Overall, most of Malaysian companies prefer to use debt to finance company's operation rather than equity issuance. Keyword: Financial Structure, Corporate Governance, Debt to Equity, Bursa Malaysia.
format	Thesis
qualification_level	Master's degree
author	Juhari, Zuria
author_facet	Juhari, Zuria
author_sort	Juhari, Zuria
title	The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
title_short	The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
title_full	The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
title_fullStr	The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
title_full_unstemmed	The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari
title_sort	relationship between corporate governance mechanisms and financial structure decision / zuria juhari
granting_institution	Universiti Teknologi MARA, Sabah
granting_department	Faculty of Accountancy
publishDate	2015
url	https://ir.uitm.edu.my/id/eprint/82978/1/82978.pdf
_version_	1783736362070966272

The relationship between corporate governance mechanisms and financial structure decision / Zuria Juhari

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