Dependents |
Leverage |
LEV |
Total debt / Total assets |
|
Bernardo et al., (2018Bernardo, C.J., Albanez, T. & Securato, J.R. (2018). Macroeconomic and institutional factors, debt composition, and capital structure of Latin American Firms. Brazilian Business Review, 15(2), 152-174. https://doi.org/10.5430/ijba.v7n6p96 https://doi.org/10.5430/ijba.v7n6p96...
); Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
) |
Long-term debt |
LTD |
Long-term debt / Total assets |
|
Bajaj et al., (2020Bajaj, Y., Kashiramka, S. & Singh, S. (2020), "Capital structure dynamics: China and India (Chindia) perspective," European Business Review, 32(5), 845-868. https://doi.org/10.1108 /EBR-09- 2019- 0203 https://doi.org/10.1108 /EBR-09- 2019- 0...
); Vijayakumaran and Vijayakumaran (2019Vijayakumaran, R. & Vijayakumaran, S. (2019). Corporate governance and capital structure decisions: Evidence from Chinese listed companies. Journal of Asian Finance, Economics and Business, 6(3), 67-79. https://doi:10.13106/jafeb.2019.vol6.no3.67 https://doi:10.13106/jafeb.2019.vol6.no3...
) |
Debt on equity |
DE |
Total debt / Shareholders’ equity |
|
Afonso et al., (2012Afonso, A., Furceri, D., & Gomes, P. (2012). Sovereign credit ratings and financial markets linkages: Application to European data. Journal of International Money and Finance, 31(3), 606-638. https://doi.org/10.1016/j.jimonfin.2012.01.016 https://doi.org/10.1016/j.jimonfin.2012....
); Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
) |
Independents |
Board size |
(BSIZE) |
Number of members in the board of directors |
- |
Bansal and Sharma (2016Bansal, N. & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103-116. http://dx.doi.org/10.5539/ijef.v8n3p103 http://dx.doi.org/10.5539/ijef.v8n3p103...
); Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
); Turrent and García (2015Turrent, G. D. C. B., & García, M. L. S. (2015). La composición del consejo de administración y la estructura accionaria como factores explicativos de la transparencia en el gobierno corporativo en Latinoamérica: evidencia en empresas cotizadas de Argentina, Brasil, Chile y México. Management Studies, 31(136), 275-286. https://doi.org/10.1016/j.estger.2015.02.001 https://doi.org/10.1016/j.estger.2015.02...
) |
CEO/President DUALITY |
(DCEO) |
Dummy variable, one if the chairman of the board is the CEO, zero otherwise |
+/- |
Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
); Jaradat (2015Jaradat, M.S. (2015). Corporate governance practices and capital structure: A study with special reference to board size, board gender, outside director, and CEO duality. International Journal of Economics, Commerce and Management, 3(5), 264-273.); Kieschnick and Moussawi (2018Kieschnick, R. & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. https://doi.org/10.1016/j.jcorpfin.2017.12.011 https://doi.org/10.1016/j.jcorpfin.2017....
) |
Duality CEO board member |
(CEOBM) |
Dummy variable, one if the CEO is also a board member, zero otherwise |
+/- |
Ararat et al., (2017Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. https://doi.org/10.1016/j.ememar.2016.10.001 https://doi.org/10.1016/j.ememar.2016.10...
); Kieschnick and Moussawi (2018Kieschnick, R. & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. https://doi.org/10.1016/j.jcorpfin.2017.12.011 https://doi.org/10.1016/j.jcorpfin.2017....
); |
Audit committee |
(AUDC) |
Dummy variable, one if there is an audit committee, zero otherwise |
+ |
Ararat et al., (2017Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. https://doi.org/10.1016/j.ememar.2016.10.001 https://doi.org/10.1016/j.ememar.2016.10...
); Bansal and Sharma (2016Bansal, N. & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103-116. http://dx.doi.org/10.5539/ijef.v8n3p103 http://dx.doi.org/10.5539/ijef.v8n3p103...
) |
Independence of the audit committee |
(AUD_IN D) |
Percentage of independent members in the audit committee |
+ |
Arslan et al. (2014Arslan, M., Zaman, R., Malik, R. K., & Mehmood, A. (2014). Impact of CEO duality and audit committee on firm performance: A study of oil & gas listed firms of Pakistan. Research Journal of Finance and Accounting, 5(17), 151-156. https://core.ac.uk/download/pdf/234630136.pdf https://core.ac.uk/download/pdf/23463013...
); Bansal and Sharma (2016Bansal, N. & Sharma, A. K. (2016). Audit committee, corporate governance and firm performance: Empirical evidence from India. International Journal of Economics and Finance, 8(3), 103-116. http://dx.doi.org/10.5539/ijef.v8n3p103 http://dx.doi.org/10.5539/ijef.v8n3p103...
); Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
) |
Audit committee expertise |
(AUD_EX P) |
Dummy variable, one if committee members have expertise in finance, zero otherwise |
+ |
Ghafran and O’Sullivan (2017Ghafran, C., & O'Sullivan, N. (2017). The impact of audit committee expertise on audit quality: Evidence from UK audit fees. The British Accounting Review, 49(6), 578-593. https://doi.org/10.1016/j.bar.2017.09.008 https://doi.org/10.1016/j.bar.2017.09.00...
); Sultana and Van der Zahn (2015Sultana, N., & Van der Zahn, J. L. W. M. (2015). Earnings conservatism and audit committee financial expertise. Accounting & Finance, 55(1), 279-310. https://doi.org/10.1111/acfi.12042 https://doi.org/10.1111/acfi.12042...
) |
Sovereign rating |
(SOVRAT) |
Average annual scores of Standard & Poor’s, Moody’s, and Fitch Rating, transformed from zero to 21 |
+ |
Jesuka and Peixoto (2022Jesuka, D., & Peixoto, F. M. (2022). Corporate governance and firm performance: Does sovereign rating matter? Corporate Governance, 22(2), 243-256. https://doi.org/10.1108/CG-08-2020-0369 https://doi.org/10.1108/CG-08-2020-0369...
); Joo and Parhizgari (2021Joo, M. H., & Parhizgari, A. M. (2021). A behavioral explanation of credit ratings and leverage adjustments. Journal of Behavioral and Experimental Finance, 29, 100435. https://doi.org/10.1016/j.jbef.2020.100435 https://doi.org/10.1016/j.jbef.2020.1004...
); Kayo and Kimura (2011Kayo, E. K., & Kimura, H. (2011). Hierarchical determinants of capital structure. Journal of Banking & Finance, 35(2), 358-371. https://doi.org/10.1016/j.jbankfin.2010.08.015 https://doi.org/10.1016/j.jbankfin.2010....
) |
Control |
Firm size |
FSIZE |
Ln (total asset) |
+ |
Alqatamin (2018Alqatamin, R. M. (2018). Audit committee effectiveness and company performance: Evidence from Jordan. Accounting and Finance Research, 7(2), 48-60. https://doi.org/10.5430/afr.v7n2p48 https://doi.org/10.5430/afr.v7n2p48...
); Dasilas and Papasyriopoulos (2015Dasilas, A. & Papasyriopoulos, N. (2015). Corporate governance, credit ratings and the capital structure of Greek SME and large listed firms. Small Business Economics, 45(1), 215- 244. https://doi.org/10.1007/s11187-015-9648-y https://doi.org/10.1007/s11187-015-9648-...
); Turrent and García (2015Turrent, G. D. C. B., & García, M. L. S. (2015). La composición del consejo de administración y la estructura accionaria como factores explicativos de la transparencia en el gobierno corporativo en Latinoamérica: evidencia en empresas cotizadas de Argentina, Brasil, Chile y México. Management Studies, 31(136), 275-286. https://doi.org/10.1016/j.estger.2015.02.001 https://doi.org/10.1016/j.estger.2015.02...
) |
Market-to-book |
MTB |
Market value / Stockholders’ equity |
+ |
Ararat et al., (2017Ararat, M., Black, B. S., & Yurtoglu, B. B. (2017). The effect of corporate governance on firm value and profitability: Time-series evidence from Turkey. Emerging Markets Review, 30, 113-132. https://doi.org/10.1016/j.ememar.2016.10.001 https://doi.org/10.1016/j.ememar.2016.10...
) |
Current liquidity |
CL |
Current assets / Current liabilities |
+ |
Kieschnick and Moussawi (2018Kieschnick, R. & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. https://doi.org/10.1016/j.jcorpfin.2017.12.011 https://doi.org/10.1016/j.jcorpfin.2017....
) |
Investments |
INV |
CAPEX / Total assets |
+ |
Yang and Zhao (2014Yang, T., & Zhao, S. (2014). CEO duality and firm performance: Evidence from an exogenous shock to the competitive environment. Journal of Banking & Finance, 49, 534-552. https://doi.org/10.1016/j.jbankfin.2014.04.008 https://doi.org/10.1016/j.jbankfin.2014....
) |