Board governance and financing policy: Evidence form public listed company in Malaysia

• Main Authors: Nor Hidayah, Abu Bakar, Ahmad Husni, Hamzah, Abdul Hadi, Zulkafli
• Format: Article
• Language: English
• Published: American Scientific Publishers 2015
• Subjects: JA Political science (General)
• Online Access: http://eprints.unisza.edu.my/6607/1/FH02-FESP-15-03773.jpg; http://eprints.unisza.edu.my/6607/
• Institution: Universiti Sultan Zainal Abidin

This paper presents evidence on the role of board governance in influencing financing policy of listed companies in Malaysia. As most of board's studies directed towards understanding the influence of its structure on firm’s performance, this study is intended to measure its relationship with corporate financial policies in a country with a highly concentrated ownership structure; Malaysia. This study employs board size, board independent and board remuneration as board governance proxy while debt ratio is used to represent financing policy of a firm. It is found that board remuneration is the only significant board governance variable in explaining financing policy of public listed companies in Malaysia.