The Impact of Corporate Governance on Financial Decision-making: Evidence from Non-financial Institutions in the Australian Securities Exchange

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2024-06-07 DOI:10.21315/aamjaf2024.20.1.2

Leviticus Mensah, Richard Arhinful, Murad Abdurahman Bein

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Abstract

The objective of this study was to examine the impact of corporate governance on the financial choices of non-financial companies operating in the Australian Securities Exchange. A purposive sampling technique was employed to select a total of 113 firms representing 14 sectors listed in the Australian Securities Exchange during the period from 2008 to 2021. The findings of the study revealed a positive and significant relationship between the size of the board, gender diversity among board members, board member affiliation and board compensation with the financial decisions of the corporations. Additionally, the study identified that the presence of experienced and non-executive board members had a negative and significant impact on internally generated funding. Furthermore, it was observed that board gender diversity, board size, board member affiliation and board compensation displayed a positive and significant association with debt financing, internally generated financing and equity financing. Most organisations displayed a preference for internal and debt financing over equity funding. Aligning governance with financial decisions enhances firms’ cost of capital. Governance quality affects capital market access, debt and equity costs. Effective governance leads to favourable financing terms.

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公司治理对财务决策的影响：来自澳大利亚证券交易所非金融机构的证据

本研究旨在探讨公司治理对在澳大利亚证券交易所运营的非金融公司财务选择的影响。研究采用了目的性抽样技术，选取了 2008 年至 2021 年期间在澳大利亚证券交易所上市的 14 个行业的 113 家公司。研究结果表明，董事会规模、董事会成员性别多样性、董事会成员隶属关系和董事会薪酬与公司财务决策之间存在显著的正相关关系。此外，研究还发现，经验丰富的非执行董事会成员的存在对内部产生的资金有显著的负面影响。此外，研究还发现，董事会的性别多样性、董事会规模、董事会成员隶属关系和董事会薪酬与债务融资、内部融资和股权融资之间存在显著的正相关关系。与股权融资相比，大多数组织更倾向于内部融资和债务融资。将治理与财务决策相结合可提高企业的资本成本。治理质量影响资本市场准入、债务和股权成本。有效的治理会带来有利的融资条件。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets