Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers.

ABSTRACT: A superlative combination of the Board of Directors (BOD) with diverse members is considered a sign of a good governance structure. Meanwhile, the key decision taken by BOD to make organizations profitable is the capital structure with the optimal mix of debt and equity. Unfortunately, previous literature has reported this relationship with a mixed trend, which may be due to research gaps in the statistical analysis. Moreover, it also shows that the relationship between them has not yet been fully predicted and can still be completely understood. This study contains time-variant and time-invariant variables, and these variables usually have an outlier's problem. As we know that the OLS estimators are more sensitive to react adversely to this problem, yet we have not received enough evidenc

SUBMITTER: PeiZhi W 

PROVIDER: S-EPMC7046277 | biostudies-literature | 2020

REPOSITORIES: biostudies-literature