Effect of corporate governance on the capital structure on non-financial firms in developing countries: A Qualitative Approach

Abstract

This study adopted a qualitative technique to examine the effect of corporate governance on the capital structure of non-financial firms in developing countries from 2011 to 2022. The study reviewed thematically evidence from 50 previous studies that examined the effect of board size on leverage. The study demonstrates an inconsistent outcome, with 52 per cent of findings positive, 32 negative and 17 mixed results. The study also found that adopting a single theory is insufficient to explain the rationale of the relationships between corporate governance and capital structure. While most studies adopted secondary data, future studies may focus on using primary data and other methods instead of regression or multiple regression analysis.

Corporate Governance and Capital Structure of Listed Manufacturing Firms in Nigeria

“…It was noticed from the extensive review of literature that only few researches were done for firms in developing market suggesting the failure of many authors in exploring the impact of corporate governance on capital structure unlike authors in developed nations (Abor & Biekpe, 2007;Uwuigbe, 2014). In Nigeria most studies on corporate governance and capital structure focused on non-financial firms, food and beverages or all listed firms on the Nigeria stock exchange market (Damina, Muritala & Umar, 2022;Yinusa & Babalola, 2012;Ehikioya, Omankhanlen, Omodero & Isibor, 2021;Aminu & Muritala, 2018). Therefore, this study intends to fill the gap not covered in previous studies by specifically looking in the direction of manufacturing firms listed on the Nigeria stock exchange market.…”