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Corporate Governance, Firm Performance and Financial Leverage across Developed and Emerging Economies

Risks (Basel), 2022-09, Vol.10 (10), p.185 [Peer Reviewed Journal]

COPYRIGHT 2022 MDPI AG ;2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 2227-9091 ;EISSN: 2227-9091 ;DOI: 10.3390/risks10100185

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  • Title:
    Corporate Governance, Firm Performance and Financial Leverage across Developed and Emerging Economies
  • Author: Kijkasiwat, Ploypailin ; Hussain, Anwar ; Mumtaz, Amna
  • Subjects: Boards of directors ; Capital structure ; Corporate governance ; developed countries ; Developing countries ; Economic aspects ; emerging countries ; Emerging markets ; Financial leverage ; firm performance ; Leverage (Finance) ; Literature reviews ; Research methodology ; Securities markets ; Stockholders
  • Is Part Of: Risks (Basel), 2022-09, Vol.10 (10), p.185
  • Description: This research inquiry analyzed the association between corporate governance and firm performance through the mediating role of financial leverage based on panel data of 2568 firms during the period from 2002 to 2017. The study uses a two-step dynamic panel as well as a generalized method of moments (GMM) to estimate these relationships. The findings demonstrated financial leverage mediates the relationship between corporate governance and firm performance in the context of developed economies, and also in emerging economies. Additionally, firm performance is negatively associated with corporate governance through excessive leverage. The study suggests it is the responsibility of the board to use low financial leverage to enhance firm performance. In emerging countries, firms with a large-sized board use low leverage, whereas in developed countries, firms with a small-sized board use low leverage to enhance corporate performance.
  • Publisher: Basel: MDPI AG
  • Language: English
  • Identifier: ISSN: 2227-9091
    EISSN: 2227-9091
    DOI: 10.3390/risks10100185
  • Source: Coronavirus Research Database
    ROAD: Directory of Open Access Scholarly Resources
    ProQuest Central
    DOAJ Directory of Open Access Journals

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