CORPORATE GOVERNANCE ATTRIBUTES AND CAPITAL STRUCTURE DECISIONS OF FIRMS: AN EMPIRICAL STUDY
The present study attempts to examine the influence of corporate governance attributes on the capital structure choices of firms in India. The study has been conducted on 113 NSE listed companies over a period of five years from 2014 to 2018 using Panel data estimation techniques in the light of existing theories on corporate governance and Capital Structure. In the study, Leverage has been used as proxy for capital structure. Board size, audit meeting and women directors in BODs have been used as independent variables whereas, Return on Assets (ROA) and Firm Growth were employed as control variables. The result demonstrates that woman directors in the BODs and ROA have statistically significant negative correlation with leverage and other variables were found to be insignificant. The empirical results are in consonance with trade-off theory and Pecking order theory. Further, the study inferred that enhancement in the quality of corporate governance mechanism reduces the propensity of using external debt in the capital structure of firms.