The impact of CEO power on financial flexibility: the moderating effect of corporate governance | ||||
| المجلة العلمية للبحوث التجارية (جامعة المنوفية) | ||||
| Article 18, Volume 54, Issue 3, July 2024, Page 95-130 PDF (804.6 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/sjsc.2024.288593.1448 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
نسرين المليح  1; رجب محمد عمران2; اسماعيل فرج سيد أحمد بدر3
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| 1کلية التجارة جامعة المنوفية | ||||
| 2كلية التجارة، جامعة مدينة السادات | ||||
| 3كلية التجارة جامعة مدينة السادات | ||||
| Abstract | ||||
| This study was set to achieve two purposes, to investigate the impact that CEO power has on financial flexibility both from debt and cash sources, and to examine the moderating role the corporate governance mechanisms play in the nexus between CEO power and financial flexibility. To achieve these purposes, data was collected from the annual financial statements of the companies included in the sample composed of 61 companies that are listed and traded in the Egyptian Stock Exchange EGX during the period 2018-2021. These companies belong to 7 main sectors: Basic Resources, Health Care & Pharmaceuticals, Industrial Goods, Services & Automobiles, Real Estate, Travel & Leisure, Food, Beverages, & Tobacco, Contracting and Construction Engineering. Two regression models were developed to test the research hypotheses, the first was about the impact of Powerful CEOs on the degree of financial flexibility, and second was about the impact of corporate governance mechanisms on the nexus between CEO power and financial flexibility. For both hypotheses, two sub hypotheses were developed to capture the two components of financial flexibility, cash flexibility and debt flexibility. Feasible Generalized Least squares FGLS test was used to test the research hypotheses because the problems of heteroskedasticity and autocorrelation existed in the study data. Results of this study indicate that CEO power has a positive significant impact on financial flexibility and that corporate governance mechanisms have a moderating effect on the nexus between CEO power and financial flexibility. | ||||
| Keywords | ||||
| Financial flexibility; CEO power; corporate governance | ||||
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