TY - JOUR
T1 - The impact of ownership structure and corporate governance on capital structure decisions in the UAE
AU - Elgammal, Mohammed M
AU - Al-Najjar, Basil
N1 - Funding Information:
The authors gratefully acknowledge financial assistance from the Qatar University, research grant number: [QUSG-CBE-FED-12/13-8].
Publisher Copyright:
Copyright © 2022 Inderscience Enterprises Ltd.
PY - 2022/6/4
Y1 - 2022/6/4
N2 - This paper investigates how ownership and corporate governance influence the capital structure decisions within an emerging market context, namely the United Arab Emirates (UAE) from 2008 to 2019. We employ panel models as well as the Two Stages Least Squares (2SLS) technique. Our reported results show that board structure has a negative effect on capital structure decisions. We also detect a positive impact of institutional ownership and managerial ownership on capital structure, while government ownership is inversely associated to capital structure. Finally, we report that profitability negatively affects a firm's capital structure. Thus, we argue that the main determinants of capital structure reported in the developed markets literature do hold in the UAE settings. Accordingly, this study contributes to previous studies in the capital structure context and adds to its puzzle by introducing new insights into the capital structure choice in a free tax environment.
AB - This paper investigates how ownership and corporate governance influence the capital structure decisions within an emerging market context, namely the United Arab Emirates (UAE) from 2008 to 2019. We employ panel models as well as the Two Stages Least Squares (2SLS) technique. Our reported results show that board structure has a negative effect on capital structure decisions. We also detect a positive impact of institutional ownership and managerial ownership on capital structure, while government ownership is inversely associated to capital structure. Finally, we report that profitability negatively affects a firm's capital structure. Thus, we argue that the main determinants of capital structure reported in the developed markets literature do hold in the UAE settings. Accordingly, this study contributes to previous studies in the capital structure context and adds to its puzzle by introducing new insights into the capital structure choice in a free tax environment.
KW - Capital structure
KW - Corporate Governance
KW - UAE
KW - Ownership Structure
KW - Panel Data
UR - https://www.inderscience.com/info/inarticletoc.php?jcode=ijaape&year=2022&vol=18&issue=1
UR - http://www.scopus.com/inward/record.url?scp=85132156880&partnerID=8YFLogxK
U2 - 10.1504/IJAAPE.2021.10043892
DO - 10.1504/IJAAPE.2021.10043892
M3 - Article
VL - 18
SP - 28
EP - 48
JO - International Journal of Accounting, Auditing and Performance Evaluation
JF - International Journal of Accounting, Auditing and Performance Evaluation
SN - 1740-8008
IS - 1
M1 - 123291
ER -
