Using a data set of Indian Manufacturing companies (NSE 500), this paper examines the relationship between corporate governance characteristics and firm-specific factors in predicting leverage decisions of a firm. The paper specifies partial adjustment model and utilises System Generalised...

Business managers strive to attain the optimal capital structure (OCS), which allows them to raise capital at a minimal cost, thereby maximising their returns. Balancing risk and reward is crucial in determining the target capital structure. Therefore, understanding the optimal leverage ratio...