Corporate Governance Mechanism and Capital Structure Decision in Nigeria

Sunday Kajola, Jayeola Olabisi () and Oladapo Fapetu ()
Additional contact information
Oladapo Fapetu: DDepartment of Banking and Finance, Federal University of Agriculture, Abeokuta, Nigeria

Business & Management Compass, 2019, issue 1, 50-68

Abstract: This study investigated the relationship between the corporate governance mechanism and capital structure of 42 Nigerian listed firms for financial years 2005-2016. The corporate governance mechanism was surrogated by three variables: corporate board size, independence and gender diversity, while leverage served as a proxy for capital structure. Using Fixed effects least squares technique as a method of estimation, the result revealed a positive and statistically significant relationship between board gender diversity and capital structure. The study did not find empirical evidence in support of corporate board size and independence having influence on capital structure decision of the sampled firms, as results produced statistically insignificant relationships. The study recommends that corporate shareholders and regulatory bodies should put in place robust policies that would encourage the participation of more women in the boardrooms of corporate organizations.

Keywords: Board of directors; Capital structure; Corporate governance; Nigeria; Panel data (search for similar items in EconPapers)
JEL-codes: G30 G32 G34 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://journal.ue-varna.bg/uploads/20190517094210_15690622135cde81f2db3bb.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrn:journl:y:2019:i:1:p:50-68

Access Statistics for this article

Business & Management Compass is currently edited by Julian Vasilev

More articles in Business & Management Compass from University of Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Yana Doneva ().