Abstract:
The capital structure decisions are considered to be the most important decisions that
a firm’s managers take. The importance of capital structure is reflected through its
potential influence on the firms’ ability to fulfil the needs of different stakeholders
and also to what extent the source of financing or the combination of sources could
lead to increased firm’s value. Many previous studies had only examined the effect
of corporate governance on capital structure through a particular characteristic of
board structure. However, such separate investigations of an individual characteristic
of board of directors ignore the possibility that there are other characteristics which
may have complementary effects or that the analysed characteristic is actually a
proxy for another characteristic.
