Cuadernos de Economía

ISSN : 0210-0266

Capital Structure Dynamics: Evaluating Financial Performance through Financial Accountability and Investment Decision: Moderating Influence of Internal Control Systems

  • Musaddag Elrayah , Department of Management, School of Business, King Faisal University, Al-Ahsa 31982, Saudi Arabia
  • Mubarak Usman Jalingo , Monetary Policy Department, Central Bank of Nigeria


Capital Structure, Financial Performance, Investment Decision, Internal Control System, Financial Accountability.


The aim of this study was to unravel the complex relationships among internal control systems, investment decisions, capital structure, financial accountability and leadership support inside the banking area. By investigating the interaction of those variables, the study aimed to enhance our understanding of the way strategic financial decision effect universal financial performance. Employing a mixed-technique method, this study conducted qualitative interviews with 12 banking professionals of the Kingdom of Saudi Arabia to glean insights into their perspectives at the studied variables. Subsequently, quantitative method was employed to check hypotheses and confirm the empirical relationships of the variables. Data was collected from 147 respondents with the help of questionnaire. The dual-method approach allowed for a comprehensive exploration of the subject be counted, enriching the depth of interpretation. The findings of this study substantiate the significant effect of capital structure decision on financial performance in the banking sectors. Mediating roles of investment decisions and financial accountability are unveiled, imparting a comprehensive information of the mechanisms through which capital structure choice translate into tangible monetary results. Moreover, the study identifies the moderating impact of internal control systems on the relationship among capital structure and financial performance. This study contributes to the literature by means of integrating qualitative and quantitative techniques to provide a comprehensive expertise of the studied variables in the banking area. The identification of mediating and moderating factors provides depth to existing theoretical frameworks, providing practical insights for banking professionals navigating complicated economic landscapes. The originality lies inside the nuanced exploration of these relationships, bridging gaps within the literature and supplying a valuable foundation for destiny studies in financial control and organizational behavior in the banking quarter.