The Interaction Effect of Financial Leverage on the Relationship Between Board Attributes and Firm Performance; Evidence of Non-financial Listed Companies of Pakistan

Journal of Accounting and Finance in Emerging Economies

Muhammad Noman Yaseen¹  Fakhra Mustafa²  Sidra Abbasi³  Sajjad Nawaz Khan⁴ 

[1] ;MS. Business administration (NCBA), Multan, Pakistan.;MS. Business administration (NCBA), Multan, Pakistan;School of Accountancy;

关键词: Leverage;    Board Size;    Outside Directors;    Performance;   

DOI  :  10.26710/jafee.v5i1.681

来源: DOAJ

【 摘 要 】

The eminence of corporate governance (CG) was grasped after the major blunders incorporate strategies and distinct corporate scandals around the world during the global financial crises. Advanced countries have passed numerous laws such as “Say on Pay” or the Sarbanes-Oxley Act to shield the shareholder’s wealth. However, evolving countries are still flourishing to gain recognition in corporate governance (CG) effectiveness. The intention of the study is to probe the link between the CG (board size, outside directors) and firm performance (Tobin’s Q). Leverage has been used as an interaction term in the current study. The data had been collected from 130 non-financial firms from the year 2012 to 2015 and Multiple Regression Techniques will be used as the instruments for data analysis. The results indicate that the board size and Tobin’s Q have a significant association and outside directors’ insignificant association with Tobin’s Q. The interaction effect of leverage found a significant connotation between board size, outside directors, and Tobin’s Q.

【 授权许可】

Unknown