Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289368 
Year of Publication: 
2022
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 9 [Issue:] 1 [Article No.:] 2149145 [Year:] 2022 [Pages:] 1-15
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
Using a data set of Indian Manufacturing companies (NSE 500), this paper examines the relationship between corporate governance characteristics and firm-specific factors in predicting leverage decisions of a firm. The paper specifies partial adjustment model and utilises System Generalised Method of Moments (GMM) to find out the factors affecting speed of adjustment. The results of this study show that non-debt tax shield positively affects SOA, whereas growth, tangibility and firm size negatively influence SOA. In the case of corporate governance variables, board size, board independence, ownership concentration and corporate governance index reveal a positive influence on SOA. The paper also confirms that it takes around 2.65 years to offset half of the target leverage from current leverage.
Subjects: 
Corporate governance
leverage
Generalised Method of Moments (GMM)
speed of adjustment
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.