Impact of Corporate Governance on Financing Decision of Listed Beverage, Food and Tobacco Companies in Sri Lanka

Corporate governance and financing decision plays a big role in the maximization of share holders’ wealth and good corporate governance is important in increasing the market value of the firm. This study investigates the relationship between corporate governance and financing decision of listed Beverage, Food and Tobacco companies in Sri Lanka. Data are obtained from the annual reports of the selected companies for the period 2011 -2015 financial years. Pooled and fixed effect regression results indicate that firm size and block share holders are positively associated with financing decision . Board composition, female director , and frequency of board meeting have negative impact on financing decision of the companies. CEO duality has no impact on financing decision of the listed Beverage, Food and Tobacco companies in Sri Lanka