The determinants and impacts of capital structure complexity: a review of literature / Siti Nabilah Mohd Shaari, Nik Nurul Aswani Nik Kamarudin and Suryani Abdul Raman

This paper aims to provide a review of the determinants and impacts of capital structure complexity. The review covers papers from the Scopus and Web of Science databases from 2010 to 2020. A total of fifteen eligible articles were chosen for review. The search terms used “debt specialization," "debt diversification," "capital structure complexity," "debt complexity," "debt heterogeneity," and "debt concentration." We focus on the articles that discuss the determinants of capital structure complexity, the impacts of having a diversified capital structure, and the theories used to explain the relationships between them. The review indicates that capital structure complexity has significant impacts on company performance, credit rationing and future debt covenants. We conclude the review by offering a simplified diagram that shows a summary of the determinants and impacts of capital structure complexity. We hope the simplified diagram could assist future studies on capital structure complexity in different institutional contexts.