Corporate Governance Mechanism and Capital Structure Decision in Nigeria

This study investigated the relationship between the corporate governance mechanism and capital structure of 42 Nigerian listed firms for financial years 2005-2016. The corporate governance mechanism was surrogated by three variables: corporate board size, independence and gender diversity, while leverage served as a proxy for capital structure. Using Fixed effects least squares technique as a method of estimation, the result revealed a positive and statistically significant relationship between board gender diversity and capital structure. The study did not find empirical evidence in support of corporate board size and independence having influence on capital structure decision of the sampled firms, as results produced statistically insignificant relationships. The study recommends that corporate shareholders and regulatory bodies should put in place robust policies that would encourage the participation of more women in the boardrooms of corporate organizations.