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

Ernest Ezeani; Rami Salem; Frank Kwabi; Khalid Boutaine; null Bilal; Bushra Komal

doi:10.1007/s11156-021-01000-4

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

Ernest Ezeani^*, Rami Salem, Frank Kwabi, Khalid Boutaine, Bilal, Bushra Komal

^*Corresponding author for this work

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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.

Original language	English
Pages (from-to)	473-498
Number of pages	26
Journal	Review of Quantitative Finance and Accounting
Volume	58
Issue number	2
Early online date	4 Jul 2021
DOIs	https://doi.org/10.1007/s11156-021-01000-4
Publication status	Published - Feb 2022

Keywords

Bank-based
Board characteristics
Capital Structure
Speed of adjustment

ASJC Scopus subject areas

Accounting
General Business,Management and Accounting
Finance

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title = "Board monitoring and capital structure dynamics: evidence from bank-based economies",

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.",

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AU - Ezeani, Ernest

AU - Salem, Rami

AU - Kwabi, Frank

AU - Boutaine, Khalid

AU - Bilal, null

AU - Komal, Bushra

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N2 - 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.

AB - 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.

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KW - Speed of adjustment

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

Abstract

Keywords

ASJC Scopus subject areas

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