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The Influence of the Ownership Structure and the Corporate Governance Procedures on the Capital Structure of the Tunisian Insurance Enterprises

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Artificial Intelligence and COVID Effect on Accounting

Abstract

This article studies the influence of corporate governance and ownership structure on capital structure of Tunisian insurance enterprises. Then, we utilize a sample composed of 22 Tunisian insurance enterprises during the period of study from 2000 to 2019. From the empirical results, we show that the improvement in governance did not affect the financing policy. The indicator which measures the size of the board of directors is negatively associated with the indicator which measures leverage ratio and the growth of independent members has more influence on the debt policy. The ROE-dividend payout rate differential has a negative nexus with the capital structure but is not influential enough. In fact, the self-financing policies adopted slightly affect the leverage ratio. Finally, the ownership structure characterized by the managerial shareholders and the institutional investors can be considered as a determining factor of the capital structure. In Tunisian insurance companies, the ownership structure influences the capital structure more than corporate governance.

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Acknowledgements

The authors would thank the editor and the anonymous reviewers for their exceptionally helpful recommendations to enhance the value of our paper.

Declaration of Conflict Interests

The authors proclaim no possible conflicts of interest regarding the investigation, authorship, and/or publication of this paper.

Funding

The authors do not receive any financial funding for this study, authorship, and/or publication of this research.

Author information

Authors and Affiliations

  1. Department of Administrative and Financial Sciences and Techniques, Applied College, Taibah University, Medinah, Saudi Arabia

    Abdelkader Derbali

  2. Department of Finance and Accounting, Higher Institute of Informatics and Management of Kairouan, Kairouan University, Kairouan, Tunisia

    Abdelkader Derbali

  3. Department of Applied Statistics and Insurance, Faculty of Commerce, Dakahlia Governorate, Mansoura University, El Gomhouria St, Mansoura, 35516, Egypt

    Hany A. Saleh

Authors
  1. Abdelkader Derbali
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  2. Hany A. Saleh
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Correspondence to Abdelkader Derbali .

Editor information

Editors and Affiliations

  1. Middle East Technical University, Northern Cyprus Campus, Güzelyurt, KKTC, Turkey

    Bahaaeddin Alareeni

  2. College of Business & Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

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Derbali, A., Saleh, H.A. (2022). The Influence of the Ownership Structure and the Corporate Governance Procedures on the Capital Structure of the Tunisian Insurance Enterprises. In: Alareeni, B., Hamdan, A. (eds) Artificial Intelligence and COVID Effect on Accounting. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-19-1036-4_6

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