Corporate Governance Mechanisms Andcapital Structure
Year: 2020
Type: article
Abstract: The purpose of this article is to review studies on corporate governance and capital structure
association and to proffer a precise understanding of its findings. There remains a good deal of uncertainty about
this association. We shall argue that there is an incompatibility between the theories and reality. For example,
agency and resource dependency theories predict this association to be positive, the general documented
evidence is an inverse association between the cited variables. Yet, these theories are the most common in the
literature. However, more multiple-theory oriented research is needed. In the view of the need for more review
articles to guide future research, as it is less common in the literature, this article contributes to the literature not
only in terms of evaluating the existing studies, assessing the inconsistent findings and identifying gaps but also
sheds the light on the importance of some mechanisms of corporate governance that have been overlooked like
board cognitive and demographic diversity (such as board tenure, gender, experience, etc.).
Source: Journal of Critical Reviews
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3038167100