Can we predict the likelihood of financial distress in companies from their corporate governance and borrowing?

IF 4.3 Q2 MANAGEMENT

International Journal of Accounting and Information Management Pub Date : 2021-01-08 DOI:10.1108/IJAIM-08-2020-0130

Sara Sofia Gomes Mariano, J. Izadi, Maurice Pratt

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引用次数: 20

Abstract

Purpose – A primary aim of the study is to investigate the impact of corporate governance structures on the likelihood of financial distress in U.K. listed companies. The paper examines the impact of borrowing and corporate governance structures on financial distress likelihood in U.K. companies. Design/methodology/approach – The study uses a quantitative approach with financial, governance and borrowing measures and data from 270 firm-observations between 2010 and 2018. The study analyses the impact of borrowing and corporate governance structures to indicate financial distress likelihood in British companies. Corporate governance variables such as ownership concentration, independence indicators, CEO duality, director remuneration and corporate loans are considered, as well as the UK Corporate Governance Code. Findings – The results indicate that companies with low ownership concentration and low degree of independence are more likely to incur financial distress. Larger boards and better director remuneration can reduce financial distress likelihood and the existence of corporate loans can increase this likelihood. Empirical consideration of corporate borrowing is a new contribution to the literature. Originality – Variables are highlighted and aggregated that have not otherwise been studied together; the UK Corporate Governance Code’s main ideas are empirically supported; the study is useful for defining corporate governance structure strategies. Keywords: Corporate Borrowing, Corporate Governance, Financial Distress, Director Remuneration

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我们能否从公司治理和借款情况来预测公司陷入财务困境的可能性?

目的-本研究的主要目的是调查公司治理结构对英国上市公司财务困境可能性的影响。本文考察了借款和公司治理结构对英国公司财务困境可能性的影响。设计/方法/方法-该研究采用定量方法，包括财务、治理和借款措施，以及2010年至2018年间270家公司的观察数据。该研究分析了借款和公司治理结构的影响，以表明英国公司陷入财务困境的可能性。考虑了股权集中度、独立性指标、CEO二元性、董事薪酬和公司贷款等公司治理变量，以及英国公司治理准则。研究发现-结果表明，低股权集中度和低独立程度的公司更容易发生财务困境。更大的董事会和更好的董事薪酬可以降低财务困境的可能性，而公司贷款的存在可以增加这种可能性。对企业借款的实证考虑是对文献的新贡献。原创性——变量被突出显示和汇总，否则没有被一起研究;《英国公司治理准则》的主要观点得到了实证支持;该研究对公司治理结构策略的制定具有一定的指导意义。关键词:公司借款，公司治理，财务困境，董事薪酬

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

International Journal of Accounting and Information Management MANAGEMENT-

CiteScore

7.90

自引率

3.00%

发文量

期刊介绍： The International Journal of Accounting & Information Management focuses on publishing research in accounting, finance, and information management. It specifically emphasizes the interaction between these research areas on an international scale and within both the private and public sectors. The aim of the journal is to bridge the knowledge gap between researchers and practitioners by covering various issues that arise in the field. These include information systems, accounting information management, innovation and technology in accounting, accounting standards and reporting, and capital market efficiency.