Abstract
The purpose of this study is to investigate the relationship between capital structure and firm performance by exploring the moderating effect of one of the corporate governance mechanisms, namely board independence. Panel data regression was employed based on a sample of 492 non-financial listed companies in Malaysia from 2010 to 2019. The results showed that capital structure has a significant positive impact on firm performance. Meanwhile, board independence significantly and negatively moderates the relationship between capital structure and firm performance. The findings of this study shall provide better insights for investors, firm managers, and policymakers on the critical role of corporate governance mechanisms in enhancing firm performance, particularly in implementing suitable actions and policies.
Keywords
- Capital Structure Search this journal for Capital Structure (opens in a new tab)
- Firm Performance Search this journal for Firm Performance (opens in a new tab)
- Corporate Governance Search this journal for Corporate Governance (opens in a new tab)
- Board Independence Search this journal for Board Independence (opens in a new tab)
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How to Cite
Mokhtar, I., Osman, I., Setapa, F., Muhamad Arifin, N. A., Mohamad Shafi, R., & Muda, R. (2023). Capital Structure–Firm Performance Nexus: The Moderating Effect of Board Independence. Information Management and Business Review, 15(4(SI)I), 38-47. https://doi.org/10.22610/imbr.v15i4(SI)I.3575
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Copyright (c) 2023 Imani Mokhtar, Ismah Osman, Fatimah Setapa, Nur Afizah Muhamad Arifin, Roslina Mohamad Shafi, Ruhaini Muda (Author)
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Keywords
- Capital Structure Search this journal for Capital Structure (opens in a new tab)
- Firm Performance Search this journal for Firm Performance (opens in a new tab)
- Corporate Governance Search this journal for Corporate Governance (opens in a new tab)
- Board Independence Search this journal for Board Independence (opens in a new tab)
Section
Research Paper
Published in
Vol. 15 No. 4(SI)I (2023)
Social Media Exposure, Fintech & Digital Consumer Engagement
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Published
2023-11-13
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