Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India

The current study aims to empirically explore the relationship between firm characteristics, corporate governance and capital structure in New Zealand's large listed companies. Eight years of data for 40 firms listed on the NZX50 Stock Exchange, are collected and observations are analysed using a conditional quantile regression. This study finds firm-specific characteristics rather than corporate governance variables play a significant role in determining firm leverage levels. The results indicate that finance policies need to vary across firm type and firm characteristics, and should match with the different borrowing requirements of listed firms.

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Management and Firm Characteristics: An Empirical Study on Capital Structure Practices of Listed Companies in Sri Lanka

10.31357/fmscmst.2013.00318 ◽

2013 ◽

Cited By ~ 1

Author(s):

M.S.A.R. Rooly

Keyword(s):

Sri Lanka ◽

Empirical Study ◽

Capital Structure ◽

Listed Companies ◽

Firm Characteristics

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Determinants of Capital Structure within the Context of Corporate Governance in Egypt

International Journal of Business and Management ◽

10.5539/ijbm.v13n8p26 ◽

2018 ◽

Vol 13 (8) ◽

pp. 26 ◽

Cited By ~ 1

Author(s):

Hanaa A. El-Habashy

Keyword(s):

Corporate Governance ◽

Capital Structure ◽

Emerging Economy ◽

Managerial Ownership ◽

Listed Firms ◽

Western Countries ◽

Specific Factors ◽

The Impact ◽

The Capital Structure

This study aims to investigate the characteristics of corporate governance that impact the capital structure decisions in listed firms in Egypt, to test the efficiency of the research results conducted in the developed Western countries in an emerging economy. A sample of 240 observations from the most active non-financial companies collected in the period 2009-2014 was used for hypothesis testing. Multiple regression models (OLS) were used for data analysis. Seven variables are used in measuring the attributes of corporate governance; they are the managerial ownership, institutional shareholding, shares owned by a large block, board size, board composition, separation of CEO/Chair positions and audit type. Four ratios were calculated for measuring the capital structure, they are long-term and short-term debt to assets, total debt to assets and debt to equity. The results suggest that corporate governance attributes have a significant impact on the capital structure decisions of listed Egyptian companies. In addition, firm-specific factors such as profitability, tangibility, growth opportunities, corporate tax, firm size and non-debt tax shields influence the choice of capital structure in Egypt. The results showed the same relationship with what was obtained in developed Western countries. The paper offers some contribution in the literature and helps to understand the impact of corporate governance on Egypt's capital structure as an emerging economy.

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Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms

Decision Science Letters ◽

10.5267/j.dsl.2012.10.004 ◽

2013 ◽

Vol 2 (1) ◽

pp. 45-58 ◽

Cited By ~ 10

Author(s):

Sunil Nandi ◽

Santanu Kumar Ghosh

Keyword(s):

Corporate Governance ◽

Corporate Disclosure ◽

Firm Characteristics ◽

Listed Firms

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Does corporate ownership affect capital structures and adjustment of capital structures — evidences from Chinese listed companies

Corporate Ownership and Control ◽

10.22495/cocv6i4sip4 ◽

2009 ◽

Vol 6 (4) ◽

pp. 532-541 ◽

Cited By ~ 1

Author(s):

Zhengwei Wang ◽

Wei Lin ◽

Michael Keefe

Keyword(s):

Capital Structure ◽

Transition Economy ◽

Structural Difference ◽

Firm Characteristics ◽

Financial Friction ◽

Listed Firms ◽

Optimal Capital Structure ◽

Study Results ◽

Optimal Capital ◽

The Difference

In Chinese transition economy, compared with state-owned firms, private firms face higher financial friction in financing activities, but have more incentive to adjust toward optimal capital structure to maximize the shareholders‟ benefit. Based on panel data of China’s listed firms from 1998 to 2007, we compare the capital structures of state-owned and privately-owned listed firms. The empirical results show that there is structural difference in static capital structure between state-owned and private listed firms while controlling for firm characteristics. We then investigate the difference in dynamics of the capital structure between these two groups of firms. Further study results tell us that the adjustment to an optimal capital structure to be faster for the private firm than for the state-owned firm.

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Corporate governance and capital structure in the periods of financial distress. Evidence from Greece

Investment Management and Financial Innovations ◽

10.21511/imfi.14(1-1).2017.12 ◽

2017 ◽

Vol 14 (1) ◽

pp. 254-262 ◽

Cited By ~ 5

Author(s):

George Kyriazopoulos

Keyword(s):

Corporate Governance ◽

Capital Structure ◽

Financial Distress ◽

Sovereign Debt ◽

Negative Impact ◽

Stock Exchange ◽

Debt Crisis ◽

Outside Directors ◽

Listed Firms ◽

Athens Stock Exchange

This study examines the relationship between corporate governance and capital structure employing data from the Athens Stock Exchange for the period 2005-2014. This period encompasses the sovereign debt crisis erupted in Greece at the end of 2009 and still continues to hit households and businesses alike. The results from the panel regression analysis signify the role of corporate governance structures in determining the capital structure of the Greek listed firms. In particular, the empirical results reveal a negative impact of board size on debt levels, which is weakened during the debt crisis period. In contrast, the presence of outside directors provides the appropriate certification to use more debt. Finally, growth opportunities and profitability are the two firm-specific factors which effect was weakened during the financially-constraint period.

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Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms

Journal of Financial Reporting and Accounting ◽

10.1108/jfra-05-2020-0129 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Helmi A. Boshnak

Keyword(s):

Corporate Governance ◽

Firm Size ◽

Ownership Structure ◽

Voluntary Disclosure ◽

Firm Characteristics ◽

Content Type ◽

Listed Firms ◽

Corporate Social ◽

The Impact ◽

Ifrs Implementation

Purpose This paper aims to examine firm characteristics and ownership structure determinants of corporate social and environmental voluntary disclosure (CSEVD) practices in Saudi Arabia to address the paucity of research in this field for Saudi listed firms. Design/methodology/approach The paper uses manual content and regression analyses for online annual report data for Saudi non-financial listed firms over the period 2016–2018 using CSEVD items drawing on global reporting initiative-G4 guidelines. Findings Models show that Saudi firm CSEVD has increased over time compared to previous studies to an average of 68% disclosure due to new corporate governance regulations and IFRS implementation. The models show that firm size, leverage, manufacturing industry type and government ownership are positive determinants of CSEVD, while family ownership is the negative driver of CSEVD. However, firm profitability, audit firm size, firm age and institutional ownership have no impact on the level of CSEVD. Originality/value Using legitimacy and stakeholder theories, the paper determines the influence of firm characteristics and ownership structure on CSEVD, identifying implications for firm stakeholders and providing some evidence on the impact of corporate governance regulation and IFRS implementation on such disclosure. The paper provides additional evidence on progress towards Saudi’s Vision 2030.

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The influence of internal corporate governance mechanisms on capital structure decisions of Chinese listed firms

Review of Accounting and Finance ◽

10.1108/raf-12-2015-0193 ◽

2017 ◽

Vol 16 (4) ◽

pp. 444-461 ◽

Cited By ~ 4

Author(s):

Agyenim Boateng ◽

Huifen Cai ◽

Daniel Borgia ◽

Xiao Gang Bi ◽

Franklin Nnaemeka Ngwu

Keyword(s):

Corporate Governance ◽

Capital Structure ◽

Fixed Effects ◽

The State ◽

Ownership Concentration ◽

Governance Mechanisms ◽

Data Set ◽

Content Type ◽

Listed Firms ◽

Corporate Governance Mechanisms

Purpose The purpose of this paper is to examine the effects of internal corporate governance mechanisms on the capital structure decisions of Chinese-listed firms. Design/methodology/approach Using a large and more recent data set consisting of 2,386 Chinese-listed firms over the period from 1998 to 2012, the authors use different statistical methods (OLS, fixed effects and system GMM) to analyse the effects of firm-specific and corporate governance influences on capital structure. Findings The authors find that the proportion of independent directors and ownership concentration exert significant influence on the level of Chinese long-term debt ratios after controlling for firm-specific determinants and split share reforms. Further analysis separating the sample of this paper into state-owned enterprises (SOEs) and privately owned enterprises (POEs) suggests that ownership concentration in the hands of the state leads to decrease in debt ratios. Research limitations/implications The finding implies that concentrated ownership in the hands of the state appears more efficient compared to their private counterparts in their monitoring role. Originality/value This paper extends prior literature, which has concentrated disproportionately on firm-specific influences on capital structure, to the effects of within-firm governance mechanisms on capital structure decisions. The paper contributes to the agency theory–capital structure discourse in an emerging country context where corporate governance system appears weak.

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