Managerial Efficiency and Corporate Leverage Policy in Pakistan

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2020-12-23 DOI:10.21315/aamajaf2020/16.2.2

Q. Zaman, M. Hassan, Arshad Hafiz Muhammad, S. Sultan, A. Ashraf

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引用次数: 1

Abstract

This study aims to observe the relationship between managerial efficiency (ME) and corporate leverage policy. We use data from Pakistani listed firms from 1999 to 2018. In our stepwise methodology, initially, we used data envelopment analysis (DEA) to acquire firm total efficiency (FTE) scores and then Tobit regression to acquire residual values. These residual values are used as a proxy of ME. After employing various definitions of leverage and fixed effect regression technique, the study observes that ME has a positive and significant relationship with leverage. It indicates that efficient managers are more inclined towards debt financing. It also implies that restraining managerial discretion through debt financing may also make them efficient. Therefore, finding partially approves the agency perspective in the case of Pakistan. Overall, this study offers theoretical contributions to better understand the role of ME and leverage and the use of DEA approach. Further, this study is fundamental to observe the ME and leverage concerning agency theory in general, and specifically in the context of Pakistan.

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巴基斯坦的管理效率与企业杠杆政策

本研究旨在观察管理效率与企业杠杆政策之间的关系。我们使用了1999年至2018年巴基斯坦上市公司的数据。在我们的逐步方法中，最初，我们使用数据包络分析（DEA）来获得企业总效率（FTE）得分，然后使用托比特回归来获得残差值。这些残差值被用作ME的代理。在采用各种杠杆定义和固定效应回归技术后，研究发现ME与杠杆有着积极而显著的关系。这表明有效率的管理者更倾向于债务融资。这也意味着，通过债务融资限制管理层的自由裁量权也可能使其更有效率。因此，调查结果在一定程度上赞同巴基斯坦的机构观点。总体而言，本研究为更好地理解ME和杠杆的作用以及DEA方法的使用提供了理论贡献。此外，本研究对于观察总体上，特别是在巴基斯坦背景下的代理理论的ME和杠杆作用是至关重要的。

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