The Influence of Corporate Governance Mechanisms On the Firms’ Capital Structure

Subject Areas : مدیریت

Beitoollah Akbarimogaddam ¹ (1دانشکده مدیریت و حسابداری، دانشگاه آزاد اسلامی قزوین، ایران)
Abdullah Piri ² (دانشکده مدیریت و حسابداری، دانشگاه آزاد اسلامی قزوین،ایران (عهده¬دار مکاتبات))

Received: 2010-09-29 Accepted : 2011-04-18 Published : 2011-08-23

Keywords: Capital Structure, Corporate Governance, duality, Board Independence, Institutional Ownership, Personal ownership,

Abstract :

  The purpose of this study was to investigate the influence of corporate governance mechanisms on the firms’ capital structure in Tehran Stock Exchange. To this end, we studied 74 firms during 1383-1387 using Multiple Regression Model. More specifically, we examined Board Independence and Duality as an internal mechanism, and Institutional and Personal ownership as an external mechanism of Corporate Governance mechanisms. The results showed that there is a significant negative relationship between Board Independence and Capital Structure. Duality did not reveal a statistically significant relationship with Capital Structure. Also, Institutional and Personal ownership did not correlate with Capital Structure.