The Effect of Board Characteristics on Capital Structure—Evidence from UK, France, Germany, and China

Abstract

This study uses a new data set to assess the effect of board characteristics on capital structure. The panel data is used to analyze the board characteristics and capital structure choices of firms in the listed companies from UK, Germany, France, and China during 2009-2021. And this paper empirically provide evidence that there are some significant relationships between the board characteristics and capital structure by estimating the fixed effects model. Although the overall evidence supports the influence of corporate board's composition on corporate financing decisions in both shareholder-oriented and stakeholder-oriented environments, these findings suggest that the impact of board characteristics on capital structure choices varies according to the different institutional features.