Board Monitoring and Capital Structure: Evidence from Bank-Based Economies

Ernest Ezeani*, Rami Salem, Frank Kwabi, Khalid Boutaine, Bilal Bilal, Bushra Komal

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


We examine the impact of board characteristics on the speed of adjustment and the capital structure dynamics of firms in bank-based economies. Using 3927 firm-year observations over a 10-year (2009–2019), we find that board characteristic influences firms' speed of adjustment in a bank-based (stakeholder-oriented) system. We also find some evidence that board characteristics have varying impacts on the capital structure of Japanese, French and German firms. We conclude that firms' capital structure reflects the corporate governance environment they operate. Our results are robust to accounting for endogeneity and alternative leverage measure.
Original languageEnglish
Pages (from-to)473–498
Number of pages26
JournalReview of Quantitative Finance and Accounting
Issue number2
Early online date4 Jul 2021
Publication statusPublished - 1 Feb 2022
Externally publishedYes

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