Purpose

Corporate boards monitor managerial decisions as concluded by the monitoring hypothesis. In this scenario, the present study stresses that leverage decisions can be used as a tool to control insolvency risk.

Design/methodology/approach

This study aims at investigating the intervention of capital structure and debt maturity on the relationship between corporate board composition and insolvency risk by employing Preacher and Hayes’s (2008) approach. The study sample comprises 284 firms from 2013 to 2017. Structural equation modeling is used to study the direct and indirect relationships among study variables.

Findings

Results show that debt maturity is a significant mediator between CEO duality and insolvency risk and between board size and insolvency risk relationships. However, the capital structure did not mediate any of the proposed links.

Research limitations/implications

This study suggests using more long-term debt to tackle insolvency risk in listed non-financial firms of Pakistan. It is also inferred that decisions regarding debt maturity are more crucial than capital structure decisions because insolvency risk is concerned.

Originality/value

This study evaluates the comparative mediating role of the debt maturity and the capital structure. Such role is uncommon in the literature addressing the relationship between governance variables and insolvency risk.

中文翻译：

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杠杆决策是否在董事会结构和破产风险之间起到中介作用？资本结构和债务期限的比较中介作用

目的

公司董事会根据监督假设来监督管理决策。在这种情况下，本研究强调杠杆决策可以用作控制破产风险的工具。

设计/方法/方法

本研究旨在采用 Preacher 和 Hayes (2008) 的方法研究资本结构和债务期限对公司董事会构成与破产风险之间关系的干预。研究样本包括 2013 年至 2017 年的 284 家公司。结构方程模型用于研究研究变量之间的直接和间接关系。

发现

结果表明，债务期限是 CEO 双重身份与破产风险之间以及董事会规模与破产风险关系之间的重要中介。然而，资本结构并未调解任何提议的联系。

研究限制/影响

本研究建议使用更多的长期债务来应对巴基斯坦上市非金融公司的破产风险。还可以推断，关于债务到期的决策比资本结构决策更重要，因为涉及到破产风险。

原创性/价值

本研究评估了债务期限和资本结构的比较中介作用。这种作用在处理治理变量与破产风险之间关系的文献中并不常见。