Capital Structure and Corporate Governance: Evidence from the Gulf Cooperation Council Countries

Abstract

The primary aim of this study is to assess the impact of corporate governance characteristics on the capital structure across firms in the Gulf Cooperation Council (GCC) countries. The study adopts a robust quantitative approach using a sample of companies listed (non-financial from 2010-2020) in the stock market in all six GCC countries, employing panel regression models. The empirical analysis finds evidence of the significant impact of both board characteristics and ownership on a firm’s capital structure. The study also explores the interplay between corporate governance characteristics, ownership structures, and internal firm factors in shaping the capital structure of GCC firms, particularly highlighting the nuances in Saudi Arabia.