Impact of corporate Governance on firms financial Decision Making

Abstract

The aim of this study was to check the impact of corporate governance variable on firm financing decisions. For this purpose, analysis is conducted on 50 companies listed in Pakistan stock exchange for the period between 2012_2016. Required secondary data was taken from the published annual reports of the selected firms. Board size, CEO and chairman duality, ownership concentration was taken as an independent variable whereas company specific were tangibility, profitably and liquidity. Debt ratio was taken as a dependent variable. Regression analysis along with Ordinary least square was used to determine the results.Results indicate board size, liquidity, profitability, tangibility have significant relation with firm financing decisions. Board size have positive relation with firm financing decision while tangibility, profitability and liquidity are negatively related with debt ratio. However, no significant relationship has been found between CEO and chair-man duality ownership concentration and firm financing decisions