Abstract:
Corporate governance and sources of finance are two critical components of a
company's overall financial management and business strategy. The sources of finance
are crucial for businesses, governments, and individuals to fund their activities,
investments, and operations. Older firms usually have a more stable financial history,
which gives them better access to various sources of finance. The objective of this study
is to find out the moderating role of firm’s age on the nexus between corporate
governance mechanism and sources of finance of listed companies in CSE. In order to
attain this research objective, secondary data, which were taken from the 50 selected
companies’ annual reports retrieved from CSE official webpage, have been used. Data
garnered from these annual reports belong to the period from 2016 to 2021. To measure
the corporate governance mechanism, Board size, composition of the board, CEO
duality and institutional ownership were taken as explanatory variables. Whereas
sources of financing are measured by debt-to-equity ratio, debt to total asset ratio and
current liability to total asset ratio. To ascertain the main objective of this survey, the
Hierarchical regression models were applied. In accordance with the results, board size,
CEO duality and institutional ownership have significantly positive impact on sources of
finance. Meanwhile the findings confirmed that firm age has the significant moderating
role on the factors such as board size, CEO duality and institutional ownership. These
findings depict that companies which adopt the proper corporate governance mechanism
can easily access the essential sources of finance when they are in need.
