2019
DOI: 10.1108/rbf-10-2018-0106
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Does ownership concentration affect cost of debt? Evidence from an emerging market

Abstract: Purpose The purpose of this paper is to explore how ownership concentration affects cost of debt (CoD) in one of the most important emerging markets in the Middle East and North Africa, Morocco. Design/methodology/approach The study employs panel data analysis using non-financial firms listed on Casablanca Stock Exchange (CSE) between 2004 and 2016. To unveil the hidden facets of the relationship between ownership concentration and CoD, and examine if this relationship changes with market conditions, we cond… Show more

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Cited by 16 publications
(13 citation statements)
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“…It originated in the financial sector, but quickly spread to affect all major international financial markets to stimulate a shift in investors' sentiment, behaviour and investment decisions. Furthermore, Jabbouri and Naili (2019) argue that financial markets swings triggered by financial crises usually shape controlling shareholders' decisions, behaviours, attitudes and priorities. The uncertainty and volatility surrounding financial crises as well as the substantial losses incurred in such periods trigger a shift in investors' risk aversion (Bucher‐Koenen & Ziegelmeyer, 2011; Hudomiet, Kézdi, & Willis, 2011; Jabbouri, Naili, & Nouina, 2019).…”
Section: Resultsmentioning
confidence: 99%
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“…It originated in the financial sector, but quickly spread to affect all major international financial markets to stimulate a shift in investors' sentiment, behaviour and investment decisions. Furthermore, Jabbouri and Naili (2019) argue that financial markets swings triggered by financial crises usually shape controlling shareholders' decisions, behaviours, attitudes and priorities. The uncertainty and volatility surrounding financial crises as well as the substantial losses incurred in such periods trigger a shift in investors' risk aversion (Bucher‐Koenen & Ziegelmeyer, 2011; Hudomiet, Kézdi, & Willis, 2011; Jabbouri, Naili, & Nouina, 2019).…”
Section: Resultsmentioning
confidence: 99%
“…It appears that the incentives to expropriate were minimal in the pre‐crisis period—the period in which the market index almost quadrupled. However, the incentives and attempts to expropriate minority shareholders increased when returns fall consistently (Jabbouri, 2016; Jabbouri & Naili, 2019). This behaviour could be driven by the desire to increase their return already adversely affected by the market performance (Jabbouri et al, 2019).…”
Section: Resultsmentioning
confidence: 99%
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“…-Ownership concentration (OC): Bank's ownership concentration, is measured by the fraction of the closely-held shares (Berle and Means, 1933;Jabbouri and Naili, 2019b;Jabbouri et al, 2019). The fraction of closely held shares is measured as the total number of shares held by stake insiders over the total number of shares outstanding.…”
Section: Concentrationmentioning
confidence: 99%