What is it about?
This study examined the underpinning theories of corporate governance and capital structure. This study also determined the degree of compliance with corporate-governance practices in the JSE-listed companies. This study also econometrically examined the role of corporate-governance in determining the capital structure of firms as presented in the generalised method of moments (GMM) results.
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Why is it important?
The governing board provides an oversight role on behalf of the shareholders of the company. The findings of this study recommends that the governing board, along with management, should carefully consider the capital-structure policy of the company with due regard to the risk appetite of the company. This is significant in preventing financial distress in companies. Any financing decisions should be made in adherence to the capital-structure policy.
Read the Original
This page is a summary of: A theoretical and econometric evaluation of corporate governance and capital structure in JSE-listed companies, Corporate Governance, May 2019, Emerald, DOI: 10.1108/cg-08-2018-0272.
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