Abstract

This research investigates the complex relationship between corporate governance, capital structure, and employee ownership as a moderator, while also taking firm size as a control variable. Understanding how these factors interact has significant implications for strategic decision-making and firm performance in the ever-changing corporate landscape. The population of this study were manufacturer sector of Pakistan stock exchange and the investigation of this   relationships, a comprehensive research framework employing quantitative methodology is developed. Advanced statistical techniques were used to acquire and analyse data from a diverse sample of companies from a variety of industries. Regression analyses was used to examine the direct impact of corporate governance variables on capital structure, while mediation analyses will shed light on employee ownership's mediating role. The repercussions of this study are multifaceted. Practitioners can develop effective governance strategies that promote optimal financial structures if they have a deeper comprehension of how corporate governance practises influence capital structure decisions. This study contributes to the existing body of knowledge by casting light on the intricate relationship between corporate governance, capital structure, and employee ownership. The purpose of this study is to provide a nuanced understanding of how corporate governance practises influence capital structure decisions and, consequently, firm performance and sustainability by investigating the moderating effect of employee ownership.