Impact of Corporate Governance Mechanism on Capital Structure with Mediation of Firm Financial Performance

Abstract

The purpose this study is to identify the influence of Corporate Governance (CG) on the capital structure (CS) of Pakistan Stock Exchange (PSX) listed non-financial enterprises are investigated here, with financial performance (FP) serving as a mediator. From 2013 through 2020, data from PSX listed non-financial firms are used to achieve this goal. The hypotheses were tested using correlation and regression analysis. The analysis was carried out using SPSS 21. CG was assessed using board size, board independence, and institutional ownership, FP was assessed using return on assets, and CS was assessed using debt to equity. This paper will look at the impacts of CG on CS with the help of FP mediation. This research will not only look at the influence and relationship between CG, FP, and CS, but it will also support the conclusions of previous studies.