Corporate governance and capital structure decisions of textile sector in Bangladesh

Md. Alaul Haque, Mohammad Shahidul Hoque, Md. Mizanur Rahman, Nishath Anjum and Md. Saidur Rahaman

International Journal of Entrepreneurship and Small Business, 2025, vol. 56, issue 4, 429-459

Abstract: This study examines how corporate governance affects capital structure decisions in Bangladesh's textile industry. This quantitative study collected data from 21 DSE-listed textile companies' financial reports. The study uses descriptive analysis, ANOVA, correlation, and multiple regressions. The study found that board meetings, same-family members, independent board members, and the audit committee all improve the textile industry's capital structure. However, CEO duality, audit committee size, return on equity, board size, committee composition, and the number of audit committee members all have a negative correlation with capital structure decisions. These disclosures show considerable effects on Bangladesh's textile capital structure. Enhancing corporate governance can improve corporate social responsibility, legal frameworks, risk mitigation, investor confidence, cost efficiency, and industry growth, resulting in significant economic benefits. The study shows the intricate relationship between corporate governance and capital structure decisions, helping Bangladesh's textile industry make educated decisions and build policies.

Keywords: Bangladesh; corporate governance; CG; capital structure; CS; capital structure decisions; textile industry. (search for similar items in EconPapers)
Date: 2025
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