{"id":7512,"date":"2022-08-01T01:23:56","date_gmt":"2022-07-31T17:23:56","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=7512"},"modified":"2023-02-20T13:50:19","modified_gmt":"2023-02-20T05:50:19","slug":"the-influence-of-corporate-governance-on-financial-derivatives-decisions","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\/","title":{"rendered":"The Influence of Corporate Governance on Financial Derivatives Decisions"},"content":{"rendered":"<p><em>This study investigates corporate governance risk behavior around the financial crises period and its sensitivity to varying levels of financial constraints. The study employs simultaneous-equations methodology to examine firms\u2019 capital structure and derivatives usage decisions simultaneously. The sample is split into high and low levels of financial risk to examine impacts of corporate governance on decisions regarding usage of derivatives under both conditions.\u00a0 Further, quantile analysis is preformed to investigate governance responses at different levels of risk. We observe that corporate governance responses vary with the levels of distress. At lower levels, insider shareholders, Chief Executive Officer (CEO) salary, and CEO age influence financial derivatives decisions. However, institutional shareholders, audit committee meetings, CEO bonus and other compensation consistently impact derivatives decisions, irrespective of the level of financial distress. The study suggests that governance mechanisms vary with financial distress levels. Firms could optimally structure their governance mechanisms accordingly. The study shows it is important to incorporate levels of risk in any corporate governance study. <\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"template":"","tags":[1447,1446,1448],"jel-code":[],"article-type":[1329],"class_list":["entry","author-asriwn","post-7512","article","type-article","status-publish","tag-corporate-governance","tag-financial-derivatives","tag-financial-distress","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Influence of Corporate Governance on Financial Derivatives Decisions | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Influence of Corporate Governance on Financial Derivatives Decisions | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"This study investigates corporate governance risk behavior around the financial crises period and its sensitivity to varying levels of financial constraints. The study employs simultaneous-equations methodology to examine firms\u2019 capital structure and derivatives usage decisions simultaneously. The sample is split into high and low levels of financial risk to examineContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-20T05:50:19+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\\\/\",\"name\":\"The Influence of Corporate Governance on Financial Derivatives Decisions | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2022-07-31T17:23:56+00:00\",\"dateModified\":\"2023-02-20T05:50:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Influence of Corporate Governance on Financial Derivatives Decisions\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Influence of Corporate Governance on Financial Derivatives Decisions | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/the-influence-of-corporate-governance-on-financial-derivatives-decisions\/","og_locale":"en_US","og_type":"article","og_title":"The Influence of Corporate Governance on Financial Derivatives Decisions | Jurnal Ekonomi Malaysia","og_description":"This study investigates corporate governance risk behavior around the financial crises period and its sensitivity to varying levels of financial constraints. 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