MODERATING ROLE OF LEVERAGE MATURITY ON THE RELATIONSHIP BETWEEN CEO DUALITY AND ASSET TANGIBILITY IN TEXTILE FIRMS: EVIDENCE FROM PAKISTAN

This study investigates the moderating role of leverage maturity on the relationship between CEO duality and asset tangibility. The data consist of 101 textile firms listed on the Pakistan Stock Exchange (PSX) from 2012 to 2017. To establish causality, this study employed one step system generalized method of moment (system GMM) regression on panel data obtained through secondary sources. The results prove that CEO duality has a significant negative impact on asset tangibility but this impact is positively moderated by leverage maturity ratio during the study period. This study suggests that long term debt is a motivation for the management to hold more fixed assets in their asset structure because these are collateralized when in need of external financing.