Benjamin Ighodalo Ehikioya, Alexander Ehimare Omankhanlen, Ofe Iwiyisi Inua, Lawrence Uchenna Okoye, T. C. Okafor
Corporate governance and capital structure are two compelling factors that affect the performance and value of the firm. The two concepts are important areas in financial management for firms to achieve high value and growth rate. This paper examines the impact of ownership and board structures on the capital structure of firms listed on the stock exchanges of selected sub-Saharan African countries for the period 2010 to 20019. The study analyses whether ownership and board structure plays any significant role in the capital structure of the firm. The result of the panel data regression analysis reveals that concentrated ownership structure negatively impacts on debt ratio in sub-Saharan African firms. The study shows that managerial ownership and board structure explains the capital structure of firms in sub-Saharan Africa. The study demonstrates evidence of a significant negative influence of managerial shareholding and CEO’s tenure on the debt ratio of listed firms in sub-Sahara Africa. The result of the study suggests that the outside directors and board size positively influence the debt ratio of listed firms in sub-Sahara African countries. Given the results of this study, it is imperative for stakeholders in the region to continually improve the ownership and board structures of the firm to avoid the negative effect of debt on performance and the value of shareholders’ wealth.