Impact of Corporate Governance on Financial Practices of New Zealand Companies
Abstract
This study examines the effects of firm level corporate governance on financing policies
of New Zealand firms. Using a unique self-constructed corporate governance index and
employing the methodology of Fama and French (1999) of financing of firms, we can report
that firms with weak corporate governance generally issue more debt and have significantly
higher cost of capital than do firms with strong governance. It is further observed that
corporate governance does not have significant impact on dividend policy in New Zealand.
Downloads
Copyright (c) 2016 Hardjo Koerniadi
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors submitting articles for publication warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty. By publishing in Applied Finance Letters, the author(s) retain copyright but agree to the dissemination of their work through Applied Finance Letters.
By publishing in Applied Finance Letters, the authors grant the Journal a Creative Commons nonexclusive worldwide license (CC-BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License) for electronic dissemination of the article via the Internet, and, a nonexclusive right to license others to reproduce, republish, transmit, and distribute the content of the journal. The authors grant the Journal the right to transfer content (without changing it), to any medium or format necessary for the purpose of preservation.
Authors agree that the Journal will not be liable for any damages, costs, or losses whatsoever arising in any circumstances from its services, including damages arising from the breakdown of technology and difficulties with access.
