CORPORATE GOVERNANCE AND CAPITAL STRUCTURE IN EMERGING ECONOMIES: INSTITUTIONAL DYNAMICS, THEORETICAL TENSIONS, AND EMPIRICAL PATTERNS

This study presents a systematic review of empirical research examining the relationship between corporate governance mechanism and capital structure decisions in emerging economies.While traditional corporate finance theories emphasize firm-specific determinants of leverage, an expanding body of literature highlights governance structures as critical influences on financial policy.However,empirical findings remain fragmented and often contradictory,particularly within heterogeneous institutional environments.This review synthesizes recurring patterns,theoretical explanations, and methodological differences observed across prior studies.The evidence indicates that governance mechanisms influence financing behavior, although the magnitude and direction of effects vary across regulatory contexts and empirical designs. Institutional factors and econometric strategies emerge as central explanations for divergent results.