Board Characteristics and Capital Structure in Malaysian Market

Using fifty nine construction companies listed in Bursa Malaysia in 2010, this study investigates the impact of selected board of directors' characteristics on the level of leverage in a firm. Debt to equity is used as a measure of leverage. The characteristics on the board of directors that we...

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Main Author:	Auais, Amin Abdel Rahman Yousef
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HD2709-2930.7 Corporations
Online Access:	https://etd.uum.edu.my/3036/1/Amin_Abdel_Rahman_Yousef.pdf https://etd.uum.edu.my/3036/2/Amin_Abdel_Rahman_Yousef.pdf
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id	my-uum-etd.3036
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ahmad, Norafifah
topic	HD2709-2930.7 Corporations
spellingShingle	HD2709-2930.7 Corporations Auais, Amin Abdel Rahman Yousef Board Characteristics and Capital Structure in Malaysian Market
description	Using fifty nine construction companies listed in Bursa Malaysia in 2010, this study investigates the impact of selected board of directors' characteristics on the level of leverage in a firm. Debt to equity is used as a measure of leverage. The characteristics on the board of directors that we examine are board size, CEO duality, directors' ownership, and ethnicity of directors. We employ two variables (profitability, and firm size) to control the relationships: Findings show a significant interpretation of capital structure decision by these factors as a whole. Specifically, the outputs of the regression that we run show negative and significant relationships between director ownership, ethnicity of directors, and profitability of firm, and size of firm. While we find that duality role of the CEO as a chairman has a negative but insignificant relationship with leverage, our sample shows that the companies which had CEO duality are few compared to those which had separated roles between a CEO and a chairman. However, there is a positive and significant correlation between debt level in the companies and size of board of directors
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Auais, Amin Abdel Rahman Yousef
author_facet	Auais, Amin Abdel Rahman Yousef
author_sort	Auais, Amin Abdel Rahman Yousef
title	Board Characteristics and Capital Structure in Malaysian Market
title_short	Board Characteristics and Capital Structure in Malaysian Market
title_full	Board Characteristics and Capital Structure in Malaysian Market
title_fullStr	Board Characteristics and Capital Structure in Malaysian Market
title_full_unstemmed	Board Characteristics and Capital Structure in Malaysian Market
title_sort	board characteristics and capital structure in malaysian market
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3036/1/Amin_Abdel_Rahman_Yousef.pdf https://etd.uum.edu.my/3036/2/Amin_Abdel_Rahman_Yousef.pdf
_version_	1747827485384376320
spelling	my-uum-etd.30362022-04-10T06:32:15Z Board Characteristics and Capital Structure in Malaysian Market 2012-06 Auais, Amin Abdel Rahman Yousef Ahmad, Norafifah Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD2709-2930.7 Corporations Using fifty nine construction companies listed in Bursa Malaysia in 2010, this study investigates the impact of selected board of directors' characteristics on the level of leverage in a firm. Debt to equity is used as a measure of leverage. The characteristics on the board of directors that we examine are board size, CEO duality, directors' ownership, and ethnicity of directors. We employ two variables (profitability, and firm size) to control the relationships: Findings show a significant interpretation of capital structure decision by these factors as a whole. Specifically, the outputs of the regression that we run show negative and significant relationships between director ownership, ethnicity of directors, and profitability of firm, and size of firm. While we find that duality role of the CEO as a chairman has a negative but insignificant relationship with leverage, our sample shows that the companies which had CEO duality are few compared to those which had separated roles between a CEO and a chairman. However, there is a positive and significant correlation between debt level in the companies and size of board of directors 2012-06 Thesis https://etd.uum.edu.my/3036/ https://etd.uum.edu.my/3036/1/Amin_Abdel_Rahman_Yousef.pdf text eng public https://etd.uum.edu.my/3036/2/Amin_Abdel_Rahman_Yousef.pdf text eng public masters masters Universiti Utara Malaysia Abdul Rahman, R., & Ali, Mohamed F. H. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783-804. Abidin, N. A. 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Board Characteristics and Capital Structure in Malaysian Market

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