Corporate Governance Mechanisms And Firms’ Debt Financing: Evidence From Oman

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.