Does ownership structure affect the optimal capital structure? A <scp>PSTR</scp> model for China

Hu, Xiaojian; Yao, Gang; Zhou, Taiyun

doi:10.1002/ijfe.2281

Cited by 9 publications

(6 citation statements)

References 150 publications

(339 reference statements)

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“…These regression models enclose some weaknesses that the panel smooth transition model can resolve. As suggested by Hu et al (2022), the panel smooth transition regression (PSTR) model “has a better fitting effect” than other nonlinear specifications. The PSTR model can be more valuable as it offers more flexibility than the quadratic regression model with imposed form of the relation between the variables.…”

Section: Introductionmentioning

confidence: 99%

Threshold effects of board gender diversity on firm performance: panel smooth transition regression model

Gharbi

Othmani

2022

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Purpose This study aims to investigate whether threshold effects exist in the relationship between board gender diversity and firm performance. Design/methodology/approach This study applies the panel smooth threshold regression model (PSTR) to a sample of 284 non-financial French firms listed on Euronext Paris over the period 2009–2017. Firm performance proxies are Tobin’s Q and return on assets (ROA). The board gender diversity is measured by the percentage of women participation in board. Findings Threshold effects in the relationships between board gender diversity and firm performance measures are found. For Tobin’s Q, the model has one threshold at the 34.17% of women directors’ appointment on boards. Similarly, for ROA, the model has one threshold at the 38.28% of women presence in the board. The results show that above the estimated threshold, women directorship has a positive impact on firm performance. However, below the threshold, there is a neutral relationship. The findings support the critical mass view that a minimum of one third women representation in board is compulsory to achieve the desired effect of gender diversity. Practical implications This study’s finding provides useful insights to managers, investors and policymakers. Managers and investors can identify the adequate board gender diversity levels that enhance firm performance. Policymakers are divided on whether mandatory or voluntary board gender quota should be adopted. This study suggests that a quota of one third can be used in policy implementation. Originality/value Unlike prior studies that consider the relationship between firm performance and board gender diversity as linear, to the best of the authors’ knowledge, this study is the first to investigate the threshold effects in this relationship using a new econometric approach.

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Section: Introductionmentioning

confidence: 99%

Threshold effects of board gender diversity on firm performance: panel smooth transition regression model

Gharbi

Othmani

2022

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“…Various reform initiatives in the new wave of stateowned enterprise reform are substantially different from those in the past [13,14]. Previously, enterprise property rights were frequently modified, and state-owned firms were directly transformed into private or other sorts of enterprises [15].…”

Section: Introductionmentioning

confidence: 99%

The Impact of Mixed-Ownership Reform on Innovation Performance of Manufacturing Companies: Evidence from China

Xia

Chen

Wang

2022

Computational Intelligence and Neuroscience

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Exploring the impact of a new round of mixed-ownership reform on enterprise development has far-reaching implications for the future development of mixed-ownership reform and the improvement of internal and external corporate governance of the enterprise. This study makes a comprehensive analysis of the relationship between mixed-ownership reform and innovation performance using a combination of empirical testing and theoretical analysis. In terms of theoretical analysis, this study summarizes research on mixed-ownership reform and innovation performance, while also integrating the theoretical basis of the development and institutional background of China’s current mixed-ownership reform, and investigating the impact of mixed-ownership reform on innovation performance. A-share list of manufacturing companies from 2015 to 2018 is selected as the research object, and K-nearest neighbor matching, multiple regression model, and propensity score matching are used to test the effect of mixed-ownership reform on innovation performance. By comparing the changes in the innovation performance level of state-owned enterprises (SOEs) before and after the mixed-ownership reform, this study proposes that the SOEs will not only enhance the competitiveness among manufacturing companies but also will have a positive impact on the high-quality development of the entire society and industrial transformation and upgrading.

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“…Meanwhile, some other scholars believe that capital structure and firm performance have a more complex relationship [71][72][73][74][75][76]. It is not linear but possibly U-shaped, inverted U-shaped, or different for different indicators [71,[77][78][79][80], even with no links [81][82][83][84]. Furthermore, Table 1 summarizes the research findings on the relationship between capital structure and firm performance.…”

Section: Capital Structure and Firm Performancementioning

confidence: 99%

“…Positive [12, 56-59, 61, 85] Negative [4,[64][65][66][67][68][69][70] U-shaped [75,76] inverted U-shaped [17,[71][72][73][74]78] No links [43,[81][82][83][84] Different for different indicators [8,18,80,86] https://doi.org/10.1371/journal.pone.0306054.t001…”

Section: Capital Structure and Firm Performance Literaturementioning

confidence: 99%

Capital structure, business model innovation, and firm performance: Evidence from Chinese listed corporate based on system GMM model

Tian,

Wang,

Kohar

2024

PLoS ONE

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This paper aims to verify the impact of capital structure on business model innovation and firm performance and the mediating effect of business model innovation. We use the data of the Chinese growth enterprises market (GME) listed high-tech firms from 2016 to 2022 as a dynamic panel data model with the system–generalized method of moments (sys-GMM), adopting return on asset and earning per share as firm performance. Our results show that capital structure has a lag effect on firm performance. The total debt ratio in the last period has a significant non-linear impact on the performance and business model innovation level of nowadays, presenting a U-shaped relationship. The first-order lag short-term debt ratio positively improves firm performance. Business model innovation significantly promotes better firm performance, and business model innovation does exist in the mediating effect between enterprise capital structure and its performance. These results remain robust to different sample sizes or proxy variables. This paper proposes some suggestions for firm operations and government policies based on the findings.

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Does ownership structure affect the optimal capital structure? A PSTR model for China

Cited by 9 publications

References 150 publications

Threshold effects of board gender diversity on firm performance: panel smooth transition regression model

Threshold effects of board gender diversity on firm performance: panel smooth transition regression model

The Impact of Mixed-Ownership Reform on Innovation Performance of Manufacturing Companies: Evidence from China

Capital structure, business model innovation, and firm performance: Evidence from Chinese listed corporate based on system GMM model

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