Foreign ownership and capital structure dynamics

Trung, K.; Lai, Tuan N.; Tran, Thuy T.C.

doi:10.1016/j.frl.2019.101337

Cited by 25 publications

(15 citation statements)

References 19 publications

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“…The study that most resembles our paper is by Do, Lai, and Tran (2019), which shows that foreign investors help reduce leverage adjustment costs, thereby leading to a faster SOA. Our paper differs from theirs in the following aspects.…”

Section: Specifically We Employ Membership In the Morgan Stanley Capi...supporting

confidence: 51%

“…These findings further confirm the findings in Aggarwal, Erel, Ferreira, and Matos (2011) on "governance travel." Third, although Do, Lai, and Tran (2019) use lagged independent variables, their approach may still contain serious endogeneity problems. We address the potential endogeneity concerns using the 2SLS regression and the DiD estimation.…”

Section: Specifically We Employ Membership In the Morgan Stanley Capi...mentioning

confidence: 99%

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Foreign institutional ownership and the speed of leverage adjustment: International evidence

Chen

et al. 2021

Journal of Corporate Finance

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Section: Specifically We Employ Membership In the Morgan Stanley Capi...supporting

confidence: 51%

Section: Specifically We Employ Membership In the Morgan Stanley Capi...mentioning

confidence: 99%

Foreign institutional ownership and the speed of leverage adjustment: International evidence

Chen

et al. 2021

Journal of Corporate Finance

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“…The empirical result attained, i.e. ASTA is non influential towards firms' performance, as per inference presented by Al-Ani (2013), Al-Jafari and Al-Samman (2015) and Do et al (2020). The outcome of the study rejects the second hypothesis (H2) that assets efficiency measured by ASTA has no impact on the firms' profitability.…”

Section: The Corrected Regression Model For Roe Is Estimated As Followssupporting

confidence: 69%

The Impact of Non-Current Assets on the Performance of Firms in Malaysian Construction Sector

Anuar¹,

Jais²,

Tinggi³

2021

IJARAFMS

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The aim of this study is to investigate on the relationship between non-current assets (NCA) for construction firms listed in Bursa Malaysia with firms' performance. The efficiency of the firms' NCA is measured by fixed assets turnover, asset tangibility, and total assets turnover mated with return on assets (ROA) and return on equity (ROE), both proxies for firms' performance. The data collected and analysed in this research focused on the construction sector listed firms under Bursa Malaysia covering the period of 2011 to 2017. The methods employed in this research include descriptive analysis, correlation analysis, and fixed effects model to examine the research objectives. The quality of the data is tested by applying normality, multicollinearity, heteroscedasticity, and auto-correlation tests. The results of this study reveal that the fixed asset turnover (FATO) in the construction sector has a significant positive impact on both ROA and ROE. On the other hand, the total assets turnover (TATO) has a significant positive impact only on ROE while asset tangibility (ASTA) has no impact at all on both ROA and ROE. These findings are useful for governments, policymakers, and other stakeholders to develop effective policies, rules, or regulations in promoting economic productivity, growth, and best financing decision.

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“…According to the results, while the effect of FDI on the values of companies in the stock market was positive, it could not be determined on the values in the real sector. Do et al (2019) examined the relationship between foreign investors and capital structure in the case of Taiwan. According to the results, foreign partners adjusted financial leverage within the optimum capital structure of the firm.…”

Section: Literaturementioning

confidence: 99%

“…On the other hand, according to the results of other studies examining the effects of foreign ownership on the company; Ege and Topaloğlu (2017) stated that the share of foreign ownerships in firms did not have an effect on the leverage of firms, Aren (2014) stated that the firm's developed corporate structure increased foreign demand, and Do et al (2019) asserted that foreign investors could reduce cost of debt if they were effective in achieving the optimum capital structure of the company. Dağlı et al (2013) argued that firms mostly (41%) considered the cost of debt while determining the cost of capital used in investments.…”

Section: Figure 1 Annual Data Of Fdis According To Sectors (Million $)mentioning

confidence: 99%

The Effect of Changes in The Ownership and Board of Directors of Companies Due to Foreign Direct Investments on the Cost of Debt: Application on BIST Manufacturing

Berberoğlu

2020

Fiscaoeconomia

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In this study, the effect of changes in the ownership and board structure of companies due to direct foreign investments on the cost of debt is examined. Manufacturing companies in Borsa Istanbul are included within the scope of the research. In this context, 43 companies have foreign shares in the ownership structure are included in the analysis. The data of the companies determined for the research between 2016-2019 were collected. In the research, the effect of foreign partnership shares, and the ratios of foreign members in the boards of directors on firms' cost of debt have been examined. According to the obtained results, a negative relationship is detected between the companies' foreign ownership share and the cost of debt. In addition, a negative relationship was found between the ratio of foreign board members and the cost of debt of companies too. Accordingly, the increase in the foreign ownership share or the ratio of foreign board members of the companies decreases the cost of debt. Furthermore, a positive relationship is found between the cost of debt and the short-term debt percentage, whereas a negative relationship between the cost of debt and the firm size.

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Foreign ownership and capital structure dynamics

Cited by 25 publications

References 19 publications

Foreign institutional ownership and the speed of leverage adjustment: International evidence

Foreign institutional ownership and the speed of leverage adjustment: International evidence

The Impact of Non-Current Assets on the Performance of Firms in Malaysian Construction Sector

The Effect of Changes in The Ownership and Board of Directors of Companies Due to Foreign Direct Investments on the Cost of Debt: Application on BIST Manufacturing

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