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IJFS, Vol. 7, Pages 50: Does Corporate Governance Influence Leverage Structure in Bangladesh'

Research paper by Mohammad Nazim Uddin, Mohammed Shamim Uddin Khan, Mosharrof Hosen

Indexed on: 07 Dec '20Published on: 13 Sep '19Published in: International Journal of Financial Studies



Abstract

This paper examines the regulation of corporate governance on leverage structure decision-making in Bangladesh from 2003 to 2017. Appropriate panel methods are employed to control the problems of serial correlation, heteroskedasticity, and the cross-sectional nature of manufacturing companies. The study finds that corporate governance attributes such as board size, managerial ownership, and duality are the dominant factors for leverage decision-making. The results also indicate that control variables such as firm size and profitability have an influential role on leverage decision-making in Bangladesh. Our findings substantiate the idea that political and family connections to corporate governance structure greatly influence the leverage decision-making of corporate firms in Bangladesh.

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