| Abstrakt: |
This study examines how board composition influences the capital structure of Jordanian manufacturing companies. It aims to fill a gap in the literature by providing insights from the Jordanian context. This research is based on the premise that corporate governance, represented by board composition, plays a crucial role in shaping capital structure decisions. It hypothesizes that factors like board size, tenure, independence, CEO duality, gender diversity, audit committees, and managerial ownership impact the use of leverage in these companies. Using a fixed-effects panel regression model, we collect data from Jordanian manufacturing firms listed on the ASE from 2015 to 2019. Statistical analysis helps us understand the relationship between board composition variables and capital structure decisions. Our analysis reveals important insights. Larger boards and longer-serving members tend to reduce a firm's reliance on debt. However, board independence, CEO duality, audit committees, gender diversity, and managerial ownership have an insignificant impact on capital structure decisions in Jordanian manufacturing firms. These findings have practical significance for regulators and financial managers. They enhance corporate governance practices in Jordan, where empirical evidence on corporate governance mechanisms is limited. Financial managers can make informed decisions about board composition and its potential effects on their firm's capital structure. [ABSTRACT FROM AUTHOR] |
