Board Financial Expertise and Debt Policy

Authors

  • Bushra Sarwar University of Science and Technology Beijing, China
  • Xiao Ming University of Science and Technology Beijing, China
  • Marria Hassan Universiti Utara, Malaysia
  • Sherzaman Khan University of Science and Technology Beijing, China

DOI:

https://doi.org/10.52461/sabas.v1i2.438

Keywords:

Debit policy, Board finance, Financial expertise, Economic decision

Abstract

This study examines whether board financial expertise affect firm leverage for the sample of Pakistan non-financial listed firms. Using panel data for the year 2010-2015, we examine the relationship between financial expertise on board and firm leverage. We find a significant positive relationship between presence of financial expertise on board and firm leverage. To control possible endogeneity, this study employs propensity score matching and found similar results. This study is important as it exhibits that the presence of financial expertise on board affects firm economic decision beyond reporting quality accuracy.

Author Biographies

Bushra Sarwar, University of Science and Technology Beijing, China

Bushra Sarwar, Research Scholar, University of Science and Technology Beijing, China

Xiao Ming, University of Science and Technology Beijing, China

Xiao Ming, Research Scholar, University of Science and Technology Beijing, China

Marria Hassan, Universiti Utara, Malaysia

Marria Hassan, Research Scholar, Universiti Utara, Malaysia

Sherzaman Khan, University of Science and Technology Beijing, China

Sherzaman Khan, Research Scholar, University of Science and Technology Beijing, China

South Asian Review of Business and Administrative Studies

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Published

2019-12-31

How to Cite

Sarwar, B., Ming, X., Hassan, M., & Khan, S. (2019). Board Financial Expertise and Debt Policy. South Asian Review of Business and Administrative Studies (SABAS), 1(2), 57–66. https://doi.org/10.52461/sabas.v1i2.438

Issue

Vol. 1 No. 2 (2019): South Asian Review of Business and Administrative Studies

Section

Articles

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