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Corporate capital structure: the role of management and corporate governance during the crisis

Sarri Stavroula

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URIhttp://purl.tuc.gr/dl/dias/B3B044B3-2101-4B53-A55F-9DFD6AB348E9-
Identifierhttps://doi.org/10.26233/heallink.tuc.78698-
Languageen-
Extent211 pagesen
TitleCorporate capital structure: the role of management and corporate governance during the crisisen
CreatorSarri Stavroulaen
CreatorΣαρρη Σταυρουλαel
Contributor [Committee Member]Atsalakis Georgiosen
Contributor [Committee Member]Ατσαλακης Γεωργιοςel
Contributor [Committee Member]Doumpos Michaelen
Contributor [Committee Member]Δουμπος Μιχαηλel
Contributor [Committee Member]Gaganis, Chrysovalantisen
Contributor [Committee Member]Ioannidis, Christosen
Contributor [Committee Member]Kosmidou, Kyriakien
Contributor [Thesis Supervisor]Pasiouras Fotiosen
Contributor [Thesis Supervisor]Πασιουρας Φωτιοςel
Contributor [Thesis Supervisor]Zopounidis Konstantinosen
Contributor [Thesis Supervisor]Ζοπουνιδης Κωνσταντινοςel
PublisherΠολυτεχνείο Κρήτηςel
PublisherTechnical University of Creteen
Academic UnitTechnical University of Crete::School of Production Engineering and Managementen
Academic UnitΠολυτεχνείο Κρήτης::Σχολή Μηχανικών Παραγωγής και Διοίκησηςel
Content SummaryCapital structure is a well-researched topic; however, the recent financial crisis highlighted that there are various issues, which deserve further investigation. Within this context, it is not surprising that the irrationally high leverage levels of America’s largest firms turned the spotlight on corporate leverage theories and their empirical testing. The current thesis examines the impact of corporate governance and managerial attributes on firm leverage. Such an investigation is of particular interest for two reasons. First, corporate leverage is actually being determined by managerial decisions. Second, inadequate managerial decision making was one of the main drivers behind the recent crisis. The present thesis focuses on three specific attributes of corporate governance and management, those being: the board of directors’ genetic diversity, managerial ability and management practices. The analysis of cross-country data leads to several interesting conclusions. First, I find a significant and negative effect of the genetic diversity of board of directors’ on the firms’ leverage, stating that heterogeneity inside the boardroom reduces firm’s debt, although it tends to increase disputes (Frijns et al., 2016). Second, the results show that managerial ability, as measured by Demerjian et al. (2012), has a positive impact on corporate capital structure both in regular and crisis periods. One potential explanation is that debt financing is preferred by more able managers (as regards firm revenues), in contrast to prior research advocating managers opposition to debt for maximizing their tenures (Bertrand & Schoar, 2003; Berger et al., 1997). Third, good management practices, as defined by the World Management Survey (WMS), positively affect corporate capital structure. This could be attributed to the positive influence of management practices, on firm performance, innovation and employment rates (Bloom & Van Reenen, 2007; Bloom et al., 2013). Overall, the present thesis contributes to the literature by bringing together the capital structure and the corporate governance literature, and by providing new insights that extend our understanding of the “capital structure puzzle”. en
Type of ItemΔιδακτορική Διατριβήel
Type of ItemDoctoral Dissertationen
Licensehttp://creativecommons.org/licenses/by-nc/4.0/en
Date of Item2018-09-10-
Date of Publication2018-
SubjectManagementen
SubjectLeverageen
SubjectCorporate governanceen
SubjectCapital structureen
Bibliographic CitationStavroula Sarri, "Corporate capital structure: the role of management and corporate governance during the crisis", Doctoral Dissertation, School of Production Engineering and Management, Technical University of Crete, Chania, Greece, 2018en

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