This study aims to offer a comprehensive hybrid systematic review of peer-reviewed literature on capital structure existing in conjunction with corporate sustainability, highlighting current research trends and proposing future research directions.
This study systematically reviews 182 peer-reviewed journal articles on capital structure and sustainability, retrieved from Scopus and Web of Science. Using the SPAR-4-SLR protocol and theory-context-characteristics and methods framework, the study integrates framework-based content analysis with bibliometric tools to ensure methodological rigour and objectivity.
The review indicates that research on capital structure within the sustainability paradigm is primarily shaped by two focal points: sustainability indices and strategic decisions aimed at optimising capital structure. Despite recent advances, several promising avenues within sustainable finance still need to be explored, presenting opportunities for future research.
This study provides critical insights for corporate decision-makers, policymakers and investors, facilitating the integration of sustainability considerations into capital structure strategies to enhance long-term financial stability and regulatory alignment.
No comprehensive review has rigorously analysed the relationship between capital structure and corporate sustainability reporting, highlighting the significance of this study as a timely and valuable contribution to the scholarly discourse.
