Board monitoring and capital structure dynamics: evidence from bank-based economies

Ezeani, E ORCID: https://orcid.org/0000-0003-0401-9000, Salem, R, Kwabi, F, Boutaine, K, Bilal and Komal, B (2022) Board monitoring and capital structure dynamics: evidence from bank-based economies. Review of Quantitative Finance and Accounting, 58 (2). pp. 473-498. ISSN 0924-865X

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Official URL: https://link.springer.com/article/10.1007/s11156-0...

Abstract

We examine the impact of board characteristics on the speed of adjustment and the capital structure dynamics of firms in bank-based economies. Using 3927 firm-year observations over a 10-year (2009–2019), we find that board characteristic influences firms' speed of adjustment in a bank-based (stakeholder-oriented) system. We also find some evidence that board characteristics have varying impacts on the capital structure of Japanese, French and German firms. We conclude that firms' capital structure reflects the corporate governance environment they operate. Our results are robust to accounting for endogeneity and alternative leverage measure.

Item Type:	Article
Peer-reviewed:	Yes
Date Deposited:	06 Sep 2021 11:42
Publisher:	Springer
Additional Information:	This is an Open Access article published in Review of Quantitative Finance and Accounting, published by Springer, copyright The Author(s).
Divisions:	Faculties > Business and Law
Subject terms:	Capital Structure, Board characteristics, Speed of adjustment, Bank-based, Social Sciences, Business, Finance, Business & Economics, Corporate governance attributes, structure decisions, firm performance, agency costs, structural decisions, firm performance, agency costs, panel-data, market, determinants, adjustment, speed, size, Finance, 01 Mathematical Sciences, 15 Commerce, Management, Tourism and Services
URI:	https://e-space.mmu.ac.uk/id/eprint/628351
DOI:	https://doi.org/10.1007/s11156-021-01000-4
ISSN	0924-865X
e-ISSN	1573-7179

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