Corporate Governance for the Best Financing Choices: An Empirical Study from Family Firms in Northern Cameroon

Abstract

In this paper we are studying the composition of the board of directors, and its influence on the financing choices of family firms in Northern Cameroon. We provide systematic evidence that the composition of the Board of managers affects company's decision toward the presence of family members and independent administrators when an important decision should be taken for the future of the company. Based on our results, we found that the composition of the Board of Directors has a significant influence on the financing choices of family firms. For example, the presence of independent directors in the Board of Directors has a significant influence on the capital structure of the family firms. [PUBLICATION ABSTRACT]