The Relationship Between Corporate Governance Mechanisms and Financing Decision: Evidence from Listed Egyptian Firms | ||||
| التجارة والتمويل | ||||
| Article 14, Volume 43, Issue 4, December 2023, Page 1-39 PDF (1.83 MB) | ||||
| DOI: 10.21608/caf.2023.328032 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Hend Mohamed El Gamel Abd Ehamed | ||||
| Assistant Professor of Accounting Department of Accounting Faculty of Management, Economics and Business Technology Egyptian Russian University | ||||
| Abstract | ||||
| The primary objective of this study is to conduct an empirical investigate how mechanisms of Corporate Governance are associated with the Financing Decisions made by corporations in Egypt. Financing decision is measured by using debt ratio. The Corporate Governance mechanisms are measured by the board size, board independence, CEO duality, managerial ownership, and institutional ownership. Furthermore, this study incorporates four control variables that represent characteristics of the company, specifically, company size, company age, profitability, and liquidity. Historical data from Egyptian firms listed and traded on the Egyptian Stock Exchange (EGX) consisting of 90 firm-year observations for the period between 2019 and 2021 are utilized. The study utilized multiple linear regression analysis to assess the association between mechanisms of corporate governance and financing decisions. The findings revealed a significant association between board size and CEO duality and financing decisions, proxied by the debt ratio, among the leading Egyptian firms. Moreover, the results highlighted the considerable influence of profitability, liquidity, and firm size on the way these firms make financing decisions. Conversely, the findings of the study also imply that the variables of the board independence, managerial ownership and institutional investor may not have a significant influence shaping the financing choices within these companies | ||||
| Keywords | ||||
| corporate governance; financing decision; debt ratio; firm size; profitability; liquidity | ||||
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