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Corporate Governance And Financing Choices Of Firms: A Panel Data Analysis


  • Anthony Kyereboah‐coleman
  • Nicholas Biekpe


We examine how corporate governance indicators such as board size, board composition and CEO duality impact on financing decisions of firms. Panel data covering the five year period 1999‐2003 from forty‐seven (47) listed firms on the Nairobi Stock Exchange (NSE) was used. Analysis was done within the Random‐effects GLS regression framework. Findings of the study indicate that firms with larger board sizes employ more debt irrespective of the maturity period and also the independence of a board negatively and significantly correlates with short‐term debts. Again, when a CEO doubles as board chairperson, less debt is employed. Thus, the study reaffirms the notion that the governance structure of a firm affects its financing choices.

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  • Anthony Kyereboah‐coleman & Nicholas Biekpe, 2006. "Corporate Governance And Financing Choices Of Firms: A Panel Data Analysis," South African Journal of Economics, Economic Society of South Africa, vol. 74(4), pages 670-681, December.
  • Handle: RePEc:bla:sajeco:v:74:y:2006:i:4:p:670-681

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    1. repec:eee:riibaf:v:44:y:2018:i:c:p:394-410 is not listed on IDEAS
    2. Collins G. Ntim, 2013. "Corporate Governance, Affirmative Action and Firm Value in Post-apartheid South Africa: A Simultaneous Equation Approach," African Development Review, African Development Bank, vol. 25(2), pages 148-172, June.
    3. repec:rbs:ijbrss:v:6:y:2017:i:1:p:89-105 is not listed on IDEAS
    4. repec:arp:tjssrr:2018:p:851-859 is not listed on IDEAS
    5. Godfred A. Bokpin & Anastacia C. Arko, 2009. "Ownership structure, corporate governance and capital structure decisions of firms: Empirical evidence from Ghana," Studies in Economics and Finance, Emerald Group Publishing, vol. 26(4), pages 246-256, October.
    6. Munisi, Gibson & Hermes, Niels & Randøy, Trond, 2014. "Corporate boards and ownership structure: Evidence from Sub-Saharan Africa," International Business Review, Elsevier, vol. 23(4), pages 785-796.

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