The Investigation of the Board Characteristics' Effect on Firm Debt Maturity Structure

Subject Areas : Management Accounting

زهره حاجیها ¹ , حسنعلی اخلاقی ²

1 - ندارد
2 - ندارد

Received: 2012-06-21 Accepted : 2012-09-10 Published : 2014-03-16

Keywords: Debt maturity structure, Board size, Percentage of Non Executive&#x0D, &#x0D, ,

Abstract :

In this study, the effect of board characteristics as corporate governancedeterminants on the firm debt maturity structure has been investigated. Therefore, themain objective of this paper is to review the effect of board size, percentage of nonexecutive directors in the board and CEO/Chair duality as independent variables on debtmaturity structure as a dependent variable in Tehran Stock Exchange. To achieve theobjective, 8 year information (2002-2009) of 72 firms were analyzed. To hypothesestesting, we have employed multivariate regression with panel data.The research results imply that there is a positive significant relation between boardsize and debt maturity structure. There is also a negative significant relation betweenpercentage of non executive directors and debt maturity structure. Additionally, it wasnot found any relation between CEO/Chair duality and debt maturity structure. Researchfindings represent the effect of strong board on financing decisions. Furthermore,hypnoses testing among different industries indicate that about relation of the board sizeand debt maturity structure in Drug and Automobile industries there are significantpositive relations and in Cement industry there exists a negative relation. In Cementand Food Industries, percentage of non executive directors in the board has a significantnegative relation. The relation between CEO/Chair duality and debt maturity structure isalso negative in the level of Chemical, Drug and Food.

References:

فهرست منابع
اسدی، غلامحسین، محمدی، شاپور و اسماعیل 
خرم، ( 1390 )، "رابطه بین ساختار سرمایه و
ساختار مالکیت"، مجله دانش حسابداری،
.48 -29،(4)2
اعتمادی، حسین، رساییان ، امیر و حسین کرد 
تبار،( 1389 ) " رابطه برخی از ابزارهای حاکمیت
شرکتی و نقد شوندگی سهام" ؛ مجله توسعه و
.59- سرمای ، ه سال سوم، شماره 5، صص. 31
» ،( آقایی، محمد علی و پری چالاکی( 1388 
بررسی رابطه بین ویژگی های حاکمیت شرکتی و
مدیریت سود در شرکت های پذیرفته شده در
فصلنامه تحقیقات .« بورس اوراق بهادار تهران
.24- حسابدار ، ی شماره 4. صص. 2
رابطه » ،( ایزدی نیا، ناصر و امیر رساییان( 1389 
برخی از ابزارهای نظارتی راهبری شرکت و
مجله ،« معیارهای اقتصادی و مالی ارزیابی عملکرد
- دانش حسابدار ، ی سال اول، شماره 1. صص 72
.89
ستایش محمدحسین، منفرد مهارلویی، محمد، 
ابراهیمی، فهیمه، ( 1390 )، "بررسی عوامل موثر
بر ساختار سرمایه از دیدگاه تئوری نمایندگی،
پیشرفت های حسابداری (علوم اجتماعی و
.89 - 60 ))، صص. 55 / 1 (پیاپی 3 ) انسانی شیراز)، 3
کریمی فرزاد، اشرفی مهدی، ( 1390 )، "بررسی 
ارتباط سازوکارهای نظام راهبری شرکتی و
ساختار سرمایه در بورس اوراق بهادار تهران"،
.91 -79،((8) پژوهش های حسابداری مال ، ی 2
بررسی عوامل » ،( گوگردچیان، احمد ( 1385 
جذب سرمایه گذاری مستقیم خارجی در صنایع
،« پتروشیمی ایران به روش داده های تابلویی
، فصلنامه پژوهش های اقتصادی ایرا ، ن شماره 26
.198- صص. 181
،( هاشمی، سیدعباس، بکرانی، کیوان، ( 1390 
"تاثیر ساختار مالکیت و نظام راهبری شرکتی بر
تصمیمات ساختار سرمایه شرکت های پذیرفته
شده در بورس اوراق بهادار تهران، حسابداری
.18- 9)، صص. 1 ) مال ، ی 3
 Abor, J. (2007). Corporate Governance and
Financing Decisions of Ghanaian Listed
Firms, Corporate Governance: International
Journal of Business in Society, 7.
 Adams, Renée B., Heitor Almeida, and
Daniel Ferreira, (2005), Powerful CEOs and
their impact on corporate performance,
Review of Financial Studies 18, 1403-1432.
 Alcock ,Jamie A,B, Finn Frank C. and
Kelvin Jui Keng Tan, (2010), The
Determinants of Debt Maturity in Australian
Firms, available at:
http://ssrn.com/abstract=1728565.
 Berger, P. G., Ofek, E. and Yermack, D. L.
(1997). Managerial Entrenchment and
Capital Structure Decisions, Journal of
Finance, 52(4), 1411-1438.
 Benmelech, Efraim, (2006), Managerial
entrenchment and debt maturity: Theory and
evidence, Harvard University working
paper.
 Bhagat, Sanjai, and Bernard S. Black,
(2002), The non-correlation between board
independence and long-term firm
performance, Journal of Corporate Law 27,
271-231.
 Bhagat, Sanjai, Dennis Carey, and Charles
Elson, (1999), Director ownership,
corporate performance, and management
turnover, The Business Lawyer 54, 885-919.
 Booth, L., Aivazian, V., Demirgüc-Kunt,
A., & Maksimovic, V. (2001). Capital
structures in developing countries. Journal
of Finance, 56(1), 87–130.
 Brickley, James A., Jeffrey Coles, and
Gregg Jarrell, (1997), Leadership structure:
Separating the CEO and chairman of the
board, Journal of Corporate Finance 3, 189-
220.
 Core, J., Holthausen, R., Larcker, D.,
(1999). Corporate governance, chief
executive officer compensation, and firm
performance. Journal of Financial
Economics 51, 371–406.
 Cremers, K.J., Nair, V.B., Wei, C., (2003).
The impact of shareholder control on
bondholders. Working Paper, New York
University.
 Cremers Baysinger, Barry D., and Henry N.
Butler, (1985), Corporate governance and
the board of directors: Performance effects
of changes in board composition, Journal of
Law, Economics and Organization 1, 101-
124.
 Datta, Sudip, Mai Iskandar-Datta, and
Kartik Raman, (2005), Managerial stock
ownership and the maturity structure of
corporate debt, Journal of Finance 60, 2333-
2350.
 Denis, David J., and Vassil T. Mihov,
(2003), The choice among bank debt, nonbank
private debt, and public debt: Evidence
from new corporate borrowings, Journal of
Financial Economics 70, 3-28.
 Fama, E. F. (1980). Agency problems and
the theory of the firm. Journal of Political
Economy, 88, 288-307.
 Fama, Eugene F., and Kenneth R. French,
(1993), “Common risk factors in the returns
on stocks and bond”,Journal of Financial
Economics, 32(1), 3-56.
 Fich, Eliezer M., and Anil
Shivdasani,(2006), Are busy boards
effective monitors? Journal of Finance 61,
689-724.
 Garcı´a-Teruel, P.J. P. Martı´nez-Solano,
(2010). Tax effect on Spanish SME
optimum debt maturity structure. Review of
Quantitative Finance and
Accounting,35:473–491.
 Godfred, A. Bokpin and Anastacia C. Arko
(2009). “Ownership structure, corporate
governance and capital structure decisions
of firms”. journal of Economics and
Finance, 26(4), 246-256.
 Guedes, J,. Opler ,T. (1996). The
determinants of the maturity of corporate
debt issues. Journal of Finance, 51:1809–
1833.
 Grossman, S. and O. Hart, (1982),
Corporate financial structure and managerial
incentives, in John McCall, ed., The
Economics of Information and Uncertainty,
)University of Chicago Press, Chicago, IL.
 Harford, Jarrad, Li, Kai, and Xinlei Zhao,
(2007), Corporate Boards and the Leverage
and Debt Maturity Choices, available at:
http://ssrn.com/abstract=891300
 Hart, Oliver D., and John Moore, (1995),
Debt seniority: An analysis of the role of
hard claims on constraining management,
American Economic Review 85, 567-585.
 Jensen, M. C. (1986). Agency Costs of Free
Cash Flow, Corporate Finance and
Takeovers. American Economic Review
,76,323-329.
 Jensen, M.C. and Meckling, W.H. (1976).
Theory of the Firm: Managerial Behaviour,
Agency Costs and Capital Structures.
Journal of Financial Economics, 3, 305-360.
 Kai Li, Heng Yue, Longkai Zhao (2009),
“Ownership institutions, and capital
structure: Evidence from china”, Journal of
Comparative Economics, 37 ,471-490.
 Klock, Mark S., Mansi, Sattar A., and
William F. Maxwell, (2005), Does corporate
governance matter to bondholders? Journal
of Financial and Quantitative Analysis 40,
693-719.
 Korner , P.(2007), "The Determinants of
Corporate Debt Maturity Structure:
Evidence from Czech Firms", Finance a
úver - Czech Journal of Economics and
Finance, 57, ( 3-4 ), 142-158.
 Lin, Chen, Ma, Yue, Malatesta, Paul, and
Yuhai Xuan,(2011), Ownership structure
and the cost of corporate borrowing, Journal
of Financial Economics, 100,1–23.
 Magri, S.,( 2010), “Debt Maturity Choice of
Nonpublic Italian Firms”, Journal of Money,
Credit and Banking, 42 (2-3), March-April,
443-463.
 Novaes, Walter, 2003, Capital structure
choice when managers are in control:
Entrenchment versus efficiency, Journal of
Business 76, 49-81.
 Pfeffer, J. (1973). Size, Composition and
Function of Corporate Boards of Directors:
the Organisation-environment linkage.
Administrative Science Quarterly, 18,349-
364.
 Pfeffer, J. and Salancick, G.R. (1978). The
External Control of Organisations: a
Resource-dependence Perspective. Harper &
Row, New York.
 Rajan, Raghuram, and Andrew Winton,
(1995), Covenants and collateral as
incentives to monitor, Journal of Finance
50, 1113-1146.
 Stulz, Rene, (2000), Does financial structure
matter for economic growth? A corporate
finance perspective, Working paper, Ohio
State University.
 Stulz, Rene M., (1990), Managerial
discretion and optimal financing policies,
Journal of Financial Economics 26, 3-27.
 Terra, P.R.S,(2011)," Determinants of
corporate debt maturity in Latin America",
European Business Review, 23 (1), 45-70.
 Wei, J. Min, X. andJiaxing, Y.(2011),
Managerial overconfidence and debt
maturity structure of firms Analysis based
on China’s listed companies, China Finance
Review International, 1(3), 262-279.
 Wen, Y., Rwegasira, K. and Bilderbeek, J.
(2002). Corporate Governance and Capital
Structure Decisions of Chinese Listed
Firms. Corporate Governance: An
International Review, 10( 2), 75-83.
 Yermack, David, (1996), Higher market
valuation of companies with a small board
of directors, Journal of Financial Economics
40, 185-211.
 Zwiebel, Jeffrey, (1996), Dynamic capital
structure under managerial entrenchment
,American Economic Review 86, 1197-1215