The impact of the composition of the board of directors on the capital structure: the case of listed Moroccan companies

  • Fouad Daidai National School of Business and Management fes, Sidi Mohamed Ben Abdellah Universty of fes, Morocco
  • Laarbi Tamnine National School of Business and Management fes, Sidi Mohamed Ben Abdellah Universty of fes, Morocco
Keywords: Capital structure, Debt, Board of directors, Size of the board of directors, Independent directors

Abstract

Empirical studies have shown that board characteristics influence the choice of capital structure in listed and unlisted companies. This paper aims to add to the existing literature on corporate governance and capital structure decisions in listed companies in Morocco by examining the relationship between board characteristics and capital structure. The paper uses a panel of data from 53 Moroccan nonfinancial listed companies from 2015 to 2019. In order to properly examine this relationship, correlation analysis and multiple linear regression (OLS) are performed between the dependent and independent variables. This study found that the percentage of female board members, the size of the board of directors as well as company-specific variables such as asset tangibility and company size have a significant influence on capital structure decisions. However, the empirical results of the relationships are only statistically significant in the case of board size and the proportion of women on the board. While the presence of independent directors and CEO duality show no effect on capital structure. It is clear from the study that corporate governance structures influence the financing decisions of listed Moroccan firms. However, this study has limitations that could lead to future research in terms of choice of variables and statistical method.

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Published
2021-07-25
How to Cite
Daidai, F., & Tamnine, L. (2021). The impact of the composition of the board of directors on the capital structure: the case of listed Moroccan companies. International Journal of Accounting, Finance, Auditing, Management and Economics, 2(4), 234-249. https://doi.org/10.5281/zenodo.5121524
Section
Articles