THE MODERATING EFFECT OF FAMILY CONTROL ON THE RELATIONSHIP BETWEEN BOARD OF DIRECTORS EFFECTIVENESS AND COST OF DEBT: EVIDENCE FROM OMAN
DOI:
https://doi.org/10.31436/ijema.v23i2.336Abstract
This paper is aimed at examining whether or not family control can influence board of directors’ effectiveness and thereby affect the cost of debt in the Sultanate of Oman. This paper reports the results from a hierarchical regression analysis based on 476 observations of firms listed on the Muscat Securities Market for the period 2005-2011. The paper contributes to the literature by extending previous cost of debt studies by considering the Sultanate of Oman business environment where family ownership control is more common. Additionally, this study contributes by using a composite measure of board of director characteristics to capture the combined effect of board effectiveness on the cost of debt based on the agency theory framework. This paper tests the moderating effect of family ownership control on the relationship between board of directors’ effectiveness and cost of debt. The empirical results indicate that family control positively moderates the relationship between board of director effectiveness and cost of debt. The results of this paper are useful to all stakeholders (including debt holders) by providing them with an important indicator regarding the kind of controlling shareholder on the board of directors that will protect their interests, especially in an environment of limited legal protection and law enforcement.Â
References
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Abor, J. “Corporate Governance and Financing Decisions of Ghanaian Listed Firms.†International Journal of Business in Society 7, no. 1 (2007): 83−92.
Aiken, L., and S. West. Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: Sage, 1991.
Aguilera, V. “Corporate Governance and Director Accountability: An Institutional Comparative Perspective.†British Journal of Management 16, no. 1 (2005): 39−53.
Aguinis, H., C. Sturman, and A. Pierce. “Comparison of Three Meta-Analytic Procedures for Estimating Moderating Effects of Categorical Variables.†Organizational Research Methods 11, no. 1 (2008): 9−34.
Ahmed, S., and S. Duellman. “Accounting Conservatism and Board of Director’s Characteristics: An Empirical Analysis.†Journal of Accounting and Economics 46, no. 2/3 (2007): 411−37.
Akhtaruddin, M., A. Hossain, M. Hossain, and L. Yao. “Corporate Governance and Voluntary Disclosure in Corporate Annual Reports of Malaysian Listed Firms.†The Journal of Applied Management Accounting Research 7, no. 1 (2009): 1−20.
Ali, A., Y. Chen, and S. Radhakrishnan. “Corporate Disclosures by Family Firms.†Journal of Accounting and Economics 44, no. 1 (2007): 238−86.
Anderson, R., and D. Reeb. “Founding family ownership and firm performance: Evidence from the S&P 500.†Journal of Finance 58, no. 3 (2003): 1301−28.
Anderson, R., S. Mansi, and D. Reeb. “Founding Family Ownership and the Agency Costs of Debt.†Journal of Financial Economics 68, no. 3 (2003): 263−85.
Anderson, R., S. Mansi, and D. Reeb. “Board Characteristics, Accounting Report Integrity, and the Cost of Debt.†Journal of Accounting and Economics 37, no. 4 (2004): 315−47.
Auh, S., and B. Menguc. “Balancing Exploration and Exploitation: The Moderating Role of Competitive Intensity.†Journal of Business Research 58, no. 12 (2005): 1652−61.
Ballesta, J., and E. Meca. “Ownership Structure and the Cost of Debt.†European Accounting Review 20, no. 2 (2011): 389−416.
Baron, M., and A. Kenny. “The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.†Journal of Personality and Social Psychology 51, no. 6 (1986): 1173−82.
Bartholomeusz, S., and G.A. Tanewski. “The Relation between Family Firms and Corporate Governance.†Journal of Small Business Management 44, no. 2 (2006): 245−67.
Bennett, J. A., R. W. Sias, and L. T. Starks. “Greener Pasture and the Impact of Dynamic Institutional Preferences.†The Review of Financial Studies 16, no. 5 (2003): 1203−38.
Bhojraj, S., and P. Sengupta. “Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors.†Journal of Business 76, no. 4 (2003): 455−75.
Blackwell, D., T. Noland, and D. Winters. “The Value of Auditor Assurance: Evidence from Loan Pricing.†Journal of Accounting Research 36, no. 2 (1998): 57–70.
Bohinc, R., and M. Bainbridge. “Corporate Governance in Post-Privatized Slovenia.†The American Journal of Comparative Law 49, no. 1 (2001): 49−77.
Byrd, J., and K. Hickman. “Do Outside Directors Monitor Managers? Evidence from Tender Offer Bids.†Journal of Financial Economics 32, no. 2 (1992): 195–222.
Byun, H. “The Cost of Debt Capital and Corporate Governance Practices.†Asia-Pacific Journal of Financial Studies 36, no. 5 (2007): 765−806.
Chahine, S. “Activity-Based Diversification, Corporate Governance, and the Market Valuation of Commercial Banks in the Gulf Commercial Council.†Journal of Management & Governance 11 (2007): 353–82.
Chau, G., and J. Gray. “Family Ownership, Board Independence and Voluntary Disclosure: Evidence from Hong Kong.†Journal of International Accounting, Auditing and Taxation 19, no. 2 (2010): 93−109.
Chen, J.P., T. Charles, and L. Jaggi. “The Association between Independent Nonexecutive Directors, Family Control and Financial Disclosures in Hong Kong.†Journal of Accounting and Public Policy 19, no. 4/5 (2000): 285−310.
Chobpichien, J., H. Haron, and D. Ibrahim. “The Quality of Board of Directors, Ownership Structure and Level of Voluntary Disclosure of Listed Companies in Thailand.†Euro Asia Journal of Management 17, no. 1 (2008): 3−39.
Cai, J., Y. Qian, and Y. Liu. “Information Asymmetry and Corporate Governance.†Drexel College of Business Research Paper No. 2008-02. Available at SSRN: http://Ssrn.Com/Abstract=1082589.
Claessens, S., S. Djankov, J. Fan, and L. Lang. “Disentangling the Incentive and Entrenchment Effects of Large Shareholdings.†Journal of Finance 57, no. 6 (2002): 2741–72.
Cohen, J., and P. Cohen. Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences. Hillsdale, NJ: Lawrence Erlbaum, 1983.
Davies, P. L. “Board Structures in the UK and Germany: Convergence or Continuing Divergence?†International and Comparative Corporate Law Journal 2, no. 4 (2002): 435−56.
Davis, F., and M. Useem. Top Management, Company Directors, and Corporate Control. Handbook of Strategy and Management, 2002.
Desender, K. “The Relationship between the Ownership Structure and the Role of the Board.†Working Papers No. 09-0105, University of Illinois at Urbana-Champaign, 2009.
Dhaliwal, S., V. Naiker, and F. Navissi. “Audit Committee Financial Expertise, Corporate Governance, and Accrual Quality: An Empirical Analysis.†Working Paper, the University of Arizona, 2008.
Ertugrul, M., and S. Hegde. “Board Compensation Practices and Agency Costs of Debt.†Journal of Corporate Finance 14, no. 5 (2008): 512−31.
Faccio, M., and L. Lang. “The Ultimate Ownership of Western European Corporations.†Journal of Financial Economics 65, no. 3 (2002): 365–95.
Fields, P., D. Fraser, and A. Subrahmanyam. “Board Quality and the Cost of Debt Capital: The Case of Bank Loans.†Journal of Banking and Finance 36, no. 5 (2010): 1536−47.
Frazier, A., P. Tix, and E. Barron. “Testing Moderator and Mediator Effects in Counseling Psychology Research.†Journal of Counselling Psychology 51, no. 1 (2004): 115.
Friend, I., and L. Lang. “An Empirical Test of the Impact of Managerial Self-Interest on Corporate Capital Structure.†Journal of Finance 47, no. 4 (1988): 271−81.
Gan, K., Z. Saleh, and M. Abessi. “Corporate Governance, Ownership Structures and Intellectual Capital. Disclosures: Malaysian Evidence.†Available at:
www.Abessi.Com/Index.Php/Dr...S.../5-Corporate-Governance-2008.
Garcia, E., and J. Ballesta. “Corporate Governance and Earnings Management: A Meta-Analysis.†Corporate Governance: An International Review 17, no. 5 (2009): 594−610.
Ghosh, C., and C. Sirmans. “On REIT CEO Compensation: Does Board Structure Matter?†The Journal of Real Estate Finance and Economics 30, no. 4 (2005): 397−428.
Hair, J., R. Anderson, R. Tatham, and W. Black. Multivariate Data Analysis. New Jersey, USA: Prentice-Hall, Inc. 7th ed., 2010.
Hair, J., R. Anderson, R. Tatham, and W. Black. Multivariate Data Analysis. New Jersey, USA: Prentice-Hall, Inc. 5th ed., 1998.
Haniffa, R., and M. Hudaib. “Corporate Governance Structure and Performance of Malaysian Listed Companies.†Journal of Business Finance and Accounting 33, no. 7/8 (2006): 1034−62.
Hashim, H. A. “The Board of Directors in Family Controlled Firms.†Paper presented at 1st International Conference on Accounting, Business and Economics (ICABEC2011), University Malaysia Terengganu, Terengganu, Malaysia, October 2011.
Ho, M., and K. Wong. “A Study of the Relationship between Corporate Governance Structures and the Extent of Voluntary Disclosure.†Journal of International Accounting, Auditing and Taxation 10, no. 2 (2001): 139−56.
Hoitash, U., R. Hoitash, and C. Bedard. “Corporate Governance and Internal Control over Financial Reporting: A Comparison of Regulatory Regimes.†The Accounting Review 84, no. 3 (2009): 839−67.
Ishak, Z., and A. Al-Ebel. “Board of Directors, Information Asymmetry, and Intellectual Capital Disclosure among Banks in Gulf Co-Operation Council.†Jurnal Pengurusan 37 (2013): 33–43.
Jaggi, B., S. Leung, and A. Gul. “Family Control, Board Independence and Earnings Management: Evidence Based on Hong Kong Firms.†Journal of Accounting and Public Policy 28, no. 2 (2009): 281−300.
Khan, M., A. Kaleem, M. Nazir, and R. Saeed. “Relationship of Family Ownership and Agency Cost of Debt in Pakistani Firms.†Sci. Int.(Lahore) 25, no. 2 (2013): 401−9.
Kim, B., A. Simunic, T. Stein, and H. Yi. “Voluntary Audits and the Cost of Debt Capital for Privately Held Firms: Korean Evidence. 2009.†Available at:
http://www.Af.Polyu.Edu.Hk/Jcae_Af/Download/Papers09/CAR%20S.2%20Kim%20revised.Pdf.
Kim, H., A. Al-Shammari, B. Kim, and H. Lee. “CEO Duality Leadership and Corporate Diversification Behavior.†Journal of Business Research 62, no. 11 (2008): 1173−80.
Kosnik, D. “Greenmail: A Study of Board Performance in Corporate Governance.†Administrative Science Quarterly 32, no. 2 (1987): 163−85.
LaPorta R., D. Lopez, F. Silanes, and A. Shleifer. “Corporate Ownership around the World.†The Journal of Finance 54, no. 2 (1999): 471–517.
Lefort, F., and F. Urzua. “Board Independence, Firm Performance and Ownership Concentration: Evidence from Chile.†Journal of Business Research 61, no. 6 (2008): 615−22.
Lipton, M., and J. Lorsch. “Modest Proposal for Improved Corporate Governance.†Business Lawyer 12, no. 3 (1992): 48−59.
Lorca, C., P. Ballesta, and E. Meca. “Board Effectiveness and Cost of Debt.†Journal of Business Ethics 1, no. 19 (2011): 613–31.
Miller, D., and L. Breton-Miller. “Family Governance and Firm Performance: Agency, Stewardship, and Capabilities.†Family Business Review 19, no. 1 (2006): 73−87.
Omran, M., A. Bolbol, and A. Fatheldin. “Corporate Governance and Firm Performance in Arab Equity Markets: Does Ownership Concentration Matter?†International Review of Law and Economics 28, no. 1 (2008): 32−45.
Pfeffer, J., and G. Salancik. “The External Control of Organizations: A Resource Dependence Perspective.†Stanford, California: Stanford University Press, 2003.
Piot, C., R. Missonier, and F. Piera. “Corporate Governance, Audit Quality and the Cost of Debt Financing of French Listed Companies.†SSRN Working Paper Series, 2007.
Pittman, J., and S. Fortin. “Auditor Choice and the Cost of Debt Capital for Newly Public Firms.†Journal of Accounting and Economics 37, no. 1 (2004): 113−36.
Poza, J. Family Business. New York: Thomson South-Western, 2007.
Rahman, A., and M. Ali. “Board, Audit Committee, Culture and Earnings Management: Malaysian Evidence.†Managerial Auditing Journal 21, no. 7 (2006): 783−804.
Ramly, Z. “The Effect of Corporate Governance and Shareholder Monitoring Mechanisms on Cost of Debt.†International Journal of Human and Social Sciences 7, no. 4 (2013): 494−504.
Rediker, K. J., and A. Seth. “Boards of Directors and Substitution Effects of Alternative Governance Mechanisms.†Strategic Management Journal 16, no. 1 (1995): 85–99.
Schulze, W., M. Lubatkin, and R. Dino. “Exploring the Agency Consequences of Ownership Dispersion among the Directors of Private Family Firms.†Academy of Management Journal 46, no. 2 (2003): 179−94.
Ward, J., A. Brown, and D. Rodriguez. “Governance Bundles, Firm Performance, and the Substitubility and Complementarity of Governance Mechanisms.†Corporate Governance: An International Review 17, no. 5 (2009): 646–60.
Young, M., M. Peng, D. Ahlstrom, G. Bruton, and Y. Jiang. “Corporate Governance in Emerging Economies: A Review of the Principal-Principal Perspective.†Journal of Management Studies 45, no. 1 (2008): 196−220.
Abor, J. “Corporate Governance and Financing Decisions of Ghanaian Listed Firms.†International Journal of Business in Society 7, no. 1 (2007): 83−92.
Aiken, L., and S. West. Multiple Regression: Testing and Interpreting Interactions. Newbury Park, CA: Sage, 1991.
Aguilera, V. “Corporate Governance and Director Accountability: An Institutional Comparative Perspective.†British Journal of Management 16, no. 1 (2005): 39−53.
Aguinis, H., C. Sturman, and A. Pierce. “Comparison of Three Meta-Analytic Procedures for Estimating Moderating Effects of Categorical Variables.†Organizational Research Methods 11, no. 1 (2008): 9−34.
Ahmed, S., and S. Duellman. “Accounting Conservatism and Board of Director’s Characteristics: An Empirical Analysis.†Journal of Accounting and Economics 46, no. 2/3 (2007): 411−37.
Akhtaruddin, M., A. Hossain, M. Hossain, and L. Yao. “Corporate Governance and Voluntary Disclosure in Corporate Annual Reports of Malaysian Listed Firms.†The Journal of Applied Management Accounting Research 7, no. 1 (2009): 1−20.
Ali, A., Y. Chen, and S. Radhakrishnan. “Corporate Disclosures by Family Firms.†Journal of Accounting and Economics 44, no. 1 (2007): 238−86.
Anderson, R., and D. Reeb. “Founding family ownership and firm performance: Evidence from the S&P 500.†Journal of Finance 58, no. 3 (2003): 1301−28.
Anderson, R., S. Mansi, and D. Reeb. “Founding Family Ownership and the Agency Costs of Debt.†Journal of Financial Economics 68, no. 3 (2003): 263−85.
Anderson, R., S. Mansi, and D. Reeb. “Board Characteristics, Accounting Report Integrity, and the Cost of Debt.†Journal of Accounting and Economics 37, no. 4 (2004): 315−47.
Auh, S., and B. Menguc. “Balancing Exploration and Exploitation: The Moderating Role of Competitive Intensity.†Journal of Business Research 58, no. 12 (2005): 1652−61.
Ballesta, J., and E. Meca. “Ownership Structure and the Cost of Debt.†European Accounting Review 20, no. 2 (2011): 389−416.
Baron, M., and A. Kenny. “The Moderator–Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.†Journal of Personality and Social Psychology 51, no. 6 (1986): 1173−82.
Bartholomeusz, S., and G.A. Tanewski. “The Relation between Family Firms and Corporate Governance.†Journal of Small Business Management 44, no. 2 (2006): 245−67.
Bennett, J. A., R. W. Sias, and L. T. Starks. “Greener Pasture and the Impact of Dynamic Institutional Preferences.†The Review of Financial Studies 16, no. 5 (2003): 1203−38.
Bhojraj, S., and P. Sengupta. “Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors.†Journal of Business 76, no. 4 (2003): 455−75.
Blackwell, D., T. Noland, and D. Winters. “The Value of Auditor Assurance: Evidence from Loan Pricing.†Journal of Accounting Research 36, no. 2 (1998): 57–70.
Bohinc, R., and M. Bainbridge. “Corporate Governance in Post-Privatized Slovenia.†The American Journal of Comparative Law 49, no. 1 (2001): 49−77.
Byrd, J., and K. Hickman. “Do Outside Directors Monitor Managers? Evidence from Tender Offer Bids.†Journal of Financial Economics 32, no. 2 (1992): 195–222.
Byun, H. “The Cost of Debt Capital and Corporate Governance Practices.†Asia-Pacific Journal of Financial Studies 36, no. 5 (2007): 765−806.
Chahine, S. “Activity-Based Diversification, Corporate Governance, and the Market Valuation of Commercial Banks in the Gulf Commercial Council.†Journal of Management & Governance 11 (2007): 353–82.
Chau, G., and J. Gray. “Family Ownership, Board Independence and Voluntary Disclosure: Evidence from Hong Kong.†Journal of International Accounting, Auditing and Taxation 19, no. 2 (2010): 93−109.
Chen, J.P., T. Charles, and L. Jaggi. “The Association between Independent Nonexecutive Directors, Family Control and Financial Disclosures in Hong Kong.†Journal of Accounting and Public Policy 19, no. 4/5 (2000): 285−310.
Chobpichien, J., H. Haron, and D. Ibrahim. “The Quality of Board of Directors, Ownership Structure and Level of Voluntary Disclosure of Listed Companies in Thailand.†Euro Asia Journal of Management 17, no. 1 (2008): 3−39.
Cai, J., Y. Qian, and Y. Liu. “Information Asymmetry and Corporate Governance.†Drexel College of Business Research Paper No. 2008-02. Available at SSRN: http://Ssrn.Com/Abstract=1082589.
Claessens, S., S. Djankov, J. Fan, and L. Lang. “Disentangling the Incentive and Entrenchment Effects of Large Shareholdings.†Journal of Finance 57, no. 6 (2002): 2741–72.
Cohen, J., and P. Cohen. Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences. Hillsdale, NJ: Lawrence Erlbaum, 1983.
Davies, P. L. “Board Structures in the UK and Germany: Convergence or Continuing Divergence?†International and Comparative Corporate Law Journal 2, no. 4 (2002): 435−56.
Davis, F., and M. Useem. Top Management, Company Directors, and Corporate Control. Handbook of Strategy and Management, 2002.
Desender, K. “The Relationship between the Ownership Structure and the Role of the Board.†Working Papers No. 09-0105, University of Illinois at Urbana-Champaign, 2009.
Dhaliwal, S., V. Naiker, and F. Navissi. “Audit Committee Financial Expertise, Corporate Governance, and Accrual Quality: An Empirical Analysis.†Working Paper, the University of Arizona, 2008.
Ertugrul, M., and S. Hegde. “Board Compensation Practices and Agency Costs of Debt.†Journal of Corporate Finance 14, no. 5 (2008): 512−31.
Faccio, M., and L. Lang. “The Ultimate Ownership of Western European Corporations.†Journal of Financial Economics 65, no. 3 (2002): 365–95.
Fields, P., D. Fraser, and A. Subrahmanyam. “Board Quality and the Cost of Debt Capital: The Case of Bank Loans.†Journal of Banking and Finance 36, no. 5 (2010): 1536−47.
Frazier, A., P. Tix, and E. Barron. “Testing Moderator and Mediator Effects in Counseling Psychology Research.†Journal of Counselling Psychology 51, no. 1 (2004): 115.
Friend, I., and L. Lang. “An Empirical Test of the Impact of Managerial Self-Interest on Corporate Capital Structure.†Journal of Finance 47, no. 4 (1988): 271−81.
Gan, K., Z. Saleh, and M. Abessi. “Corporate Governance, Ownership Structures and Intellectual Capital. Disclosures: Malaysian Evidence.†Available at:
www.Abessi.Com/Index.Php/Dr...S.../5-Corporate-Governance-2008.
Garcia, E., and J. Ballesta. “Corporate Governance and Earnings Management: A Meta-Analysis.†Corporate Governance: An International Review 17, no. 5 (2009): 594−610.
Ghosh, C., and C. Sirmans. “On REIT CEO Compensation: Does Board Structure Matter?†The Journal of Real Estate Finance and Economics 30, no. 4 (2005): 397−428.
Hair, J., R. Anderson, R. Tatham, and W. Black. Multivariate Data Analysis. New Jersey, USA: Prentice-Hall, Inc. 7th ed., 2010.
Hair, J., R. Anderson, R. Tatham, and W. Black. Multivariate Data Analysis. New Jersey, USA: Prentice-Hall, Inc. 5th ed., 1998.
Haniffa, R., and M. Hudaib. “Corporate Governance Structure and Performance of Malaysian Listed Companies.†Journal of Business Finance and Accounting 33, no. 7/8 (2006): 1034−62.
Hashim, H. A. “The Board of Directors in Family Controlled Firms.†Paper presented at 1st International Conference on Accounting, Business and Economics (ICABEC2011), University Malaysia Terengganu, Terengganu, Malaysia, October 2011.
Ho, M., and K. Wong. “A Study of the Relationship between Corporate Governance Structures and the Extent of Voluntary Disclosure.†Journal of International Accounting, Auditing and Taxation 10, no. 2 (2001): 139−56.
Hoitash, U., R. Hoitash, and C. Bedard. “Corporate Governance and Internal Control over Financial Reporting: A Comparison of Regulatory Regimes.†The Accounting Review 84, no. 3 (2009): 839−67.
Ishak, Z., and A. Al-Ebel. “Board of Directors, Information Asymmetry, and Intellectual Capital Disclosure among Banks in Gulf Co-Operation Council.†Jurnal Pengurusan 37 (2013): 33–43.
Jaggi, B., S. Leung, and A. Gul. “Family Control, Board Independence and Earnings Management: Evidence Based on Hong Kong Firms.†Journal of Accounting and Public Policy 28, no. 2 (2009): 281−300.
Khan, M., A. Kaleem, M. Nazir, and R. Saeed. “Relationship of Family Ownership and Agency Cost of Debt in Pakistani Firms.†Sci. Int.(Lahore) 25, no. 2 (2013): 401−9.
Kim, B., A. Simunic, T. Stein, and H. Yi. “Voluntary Audits and the Cost of Debt Capital for Privately Held Firms: Korean Evidence. 2009.†Available at:
http://www.Af.Polyu.Edu.Hk/Jcae_Af/Download/Papers09/CAR%20S.2%20Kim%20revised.Pdf.
Kim, H., A. Al-Shammari, B. Kim, and H. Lee. “CEO Duality Leadership and Corporate Diversification Behavior.†Journal of Business Research 62, no. 11 (2008): 1173−80.
Kosnik, D. “Greenmail: A Study of Board Performance in Corporate Governance.†Administrative Science Quarterly 32, no. 2 (1987): 163−85.
LaPorta R., D. Lopez, F. Silanes, and A. Shleifer. “Corporate Ownership around the World.†The Journal of Finance 54, no. 2 (1999): 471–517.
Lefort, F., and F. Urzua. “Board Independence, Firm Performance and Ownership Concentration: Evidence from Chile.†Journal of Business Research 61, no. 6 (2008): 615−22.
Lipton, M., and J. Lorsch. “Modest Proposal for Improved Corporate Governance.†Business Lawyer 12, no. 3 (1992): 48−59.
Lorca, C., P. Ballesta, and E. Meca. “Board Effectiveness and Cost of Debt.†Journal of Business Ethics 1, no. 19 (2011): 613–31.
Miller, D., and L. Breton-Miller. “Family Governance and Firm Performance: Agency, Stewardship, and Capabilities.†Family Business Review 19, no. 1 (2006): 73−87.
Omran, M., A. Bolbol, and A. Fatheldin. “Corporate Governance and Firm Performance in Arab Equity Markets: Does Ownership Concentration Matter?†International Review of Law and Economics 28, no. 1 (2008): 32−45.
Pfeffer, J., and G. Salancik. “The External Control of Organizations: A Resource Dependence Perspective.†Stanford, California: Stanford University Press, 2003.
Piot, C., R. Missonier, and F. Piera. “Corporate Governance, Audit Quality and the Cost of Debt Financing of French Listed Companies.†SSRN Working Paper Series, 2007.
Pittman, J., and S. Fortin. “Auditor Choice and the Cost of Debt Capital for Newly Public Firms.†Journal of Accounting and Economics 37, no. 1 (2004): 113−36.
Poza, J. Family Business. New York: Thomson South-Western, 2007.
Rahman, A., and M. Ali. “Board, Audit Committee, Culture and Earnings Management: Malaysian Evidence.†Managerial Auditing Journal 21, no. 7 (2006): 783−804.
Ramly, Z. “The Effect of Corporate Governance and Shareholder Monitoring Mechanisms on Cost of Debt.†International Journal of Human and Social Sciences 7, no. 4 (2013): 494−504.
Rediker, K. J., and A. Seth. “Boards of Directors and Substitution Effects of Alternative Governance Mechanisms.†Strategic Management Journal 16, no. 1 (1995): 85–99.
Schulze, W., M. Lubatkin, and R. Dino. “Exploring the Agency Consequences of Ownership Dispersion among the Directors of Private Family Firms.†Academy of Management Journal 46, no. 2 (2003): 179−94.
Ward, J., A. Brown, and D. Rodriguez. “Governance Bundles, Firm Performance, and the Substitubility and Complementarity of Governance Mechanisms.†Corporate Governance: An International Review 17, no. 5 (2009): 646–60.
Young, M., M. Peng, D. Ahlstrom, G. Bruton, and Y. Jiang. “Corporate Governance in Emerging Economies: A Review of the Principal-Principal Perspective.†Journal of Management Studies 45, no. 1 (2008): 196−220.
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2015-11-30
How to Cite
Amrah, M. R., Hashim, H. A., & Mohamad Ariff, A. (2015). THE MODERATING EFFECT OF FAMILY CONTROL ON THE RELATIONSHIP BETWEEN BOARD OF DIRECTORS EFFECTIVENESS AND COST OF DEBT: EVIDENCE FROM OMAN. International Journal of Economics, Management and Accounting, 23(2), 217–239. https://doi.org/10.31436/ijema.v23i2.336
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