The effect of ownership structure on leverage decision: new evidence from Chinese listed firms

Liu, Qigui; Tian, Gary Gang; Wang, Xiaoming

doi:10.1080/13547860.2011.564755

Cited by 55 publications

(61 citation statements)

References 59 publications

(60 reference statements)

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“…The results are consistent with Deesomsak et al (2004), Aljifri and Moustafa (2007), and Ezeoha, A.E., Okafor, F.O. (2009), andLiu. Q, et al (2011), as they find a positive significant relation suggesting that government firms may enjoy credit facilities guarantees and easier access to borrow from banks and the state itself.…”

Section: Results Of Regression Analysissupporting

confidence: 81%

“…Deesomsak et al (2004), and Ezeoha and Okafor (2009) argue that government partnership with firms gives them more access to different financial resources and a good chance to borrow at favorable rates. However, the empirical results are mixed, Liu et al (2011) in China find that state-owned enterprises (SOEs) have the tendency to employ more debt and accordingly maintain higher leverage ratios than those of non-SOEs. This is further confirmed by Aljifri and Moustafa (2007) who find a positive significant relation, suggesting that managers are likely to choose higher levels of debt to secure their employment risk.…”

Section: Block Shareholding and Corporate Financial Leveragementioning

confidence: 96%

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The Effects of Board Characteristics and Ownership Structure on the Corporate Financial Leverage

Abobakr¹,

Elgiziry²

2015

AFR

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The paper aims to investigate the linkage between some corporate governance mechanism such as board characteristics, ownership structure and corporate financial leverage in an emerging market, Egypt. To achieve the objectives of this study, we use a sample of 36 non-financial firms selected from the more actively traded 50 listed Egyptian firms in the Egyptian Stock Exchange (EGX) covering the period from 2007 to 2011. Measures of corporate financial leverage employed are the total debt ratio, the long-term debt ratio and the short-term debt ratio. The explanatory variables of corporate characteristics are board size, outside non-executive directors, CEO duality, and board female proportion. The measures of ownership structure include managerial ownership, institutional ownership, block holder's ownership and governmental ownership. Similarly, the effect of some control variables like firm size, profitability, growth and tangibility has been also examined. The multiple regression models (OLS) were used to analyze the data. Results show that institutional ownership and governmental ownership are significantly positively related to corporate leverage, whereas board size, board female, and block holding are found to be significantly negatively correlated. Although Egyptian firms still have weak corporate governance mechanisms compared to firms in developing countries, the empirical findings suggest that board characteristics and ownership structure playing an important role in deciding the Egyptian corporate financial leverage.

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Section: Results Of Regression Analysissupporting

confidence: 81%

Section: Block Shareholding and Corporate Financial Leveragementioning

confidence: 96%

The Effects of Board Characteristics and Ownership Structure on the Corporate Financial Leverage

Abobakr¹,

Elgiziry²

2015

AFR

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“…For example, according to the current financial policies, corporate ownership is one of the main factors considered by banks when deciding whether to give a loan. Under this circumstance, state-owned enterprises (SOEs) with a strong reputation can enjoy more preferential benefits from the policy [55,56]. On the contrary, SMEs are off limits, given their scale.…”

Section: Different Foci Of Scf Research In Chinamentioning

confidence: 99%

Supply Chain Finance in China: Business Innovation and Theory Development

Liu

Zhou

2015

Sustainability

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Supply chain finance (SCF) is concerned with the capital flows within a supply chain, an area often neglected in past decades, while SCF does have an impact on a firm's capability to adopt sustainable supply chain management (SCM) practices. The aim of this study is to explore new insight from a growing body of research which is investigating SCF issues in China, an evolving transition economy. A content analysis on a review of 151 Chinese-written SCF papers from 2004-2014, based on a sample of 45 leading Chinese journals (Chinese Social Science Citation Index, CSSCI) was conducted from three perspectives: topical coverage, theoretical application and methodological inquiry. The study reveals that the research stream of SCF in China has emerged and evolved to a considerable extent. However, the SCF phenomenon in China is not exactly the same as "SCF" as it is perceived in the mature economy, which is articulated in mainstream SCM English literature. The Chinese business context in which SCF has been implemented has played a dominant role in initiating, affecting and even shaping SCF. This study represents the first endeavor in the field of SCM. It diffuses the Chinese-written SCF research in mainstream SCM English literature.

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“…In contrast, in regions with better institutional environment, the effect of pyramid structure on capital structure is relatively weak (Liu et al 2011). A favorable institutional environment will reduce the ultimate owners' expropriation behaviors and protect the minority shareholders' interests.…”

Section: H1mentioning

confidence: 92%

“…Recently literature has also supported the notion that the effect of ownership structure on capital structure might be influenced by the institutional environment (Liu et al 2011). A relatively developed degree of institutional support generally provides companies with a better environment for market-based competition, especially because this means that the market institutions will be more effective, and property rights more likely to be protected (Li and Qian 2013).…”

Section: H1mentioning

confidence: 98%

The Inner Structure of Pyramid and Capital Structure: Evidence from China

2015

Economics

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This paper examines the effects of the pyramid inner ownership structure of companies on capital structure in an emerging market economy country. The author uses firm-level panel data of Chinese listed companies to analyze the effects of the inner structure of pyramid on capital structure, and the differences in those effects between regions with different institutional environments. The results indicate that the longer the layers of a pyramid structure, the stronger its 'leverage effect', as well as the ultimate owner's motivation to expand debt financing. Thus the layers of pyramid structure have a significantly positive effect on capital structure. However, the chains within a pyramid structure have no significant effect on capital structure. Compared with regions with poor institutional environment, in regions with a better institutional environment the effect of the layers of pyramid structure on capital structure becomes smaller. JEL G32 G38 M48

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The effect of ownership structure on leverage decision: new evidence from Chinese listed firms

Cited by 55 publications

References 59 publications

The Effects of Board Characteristics and Ownership Structure on the Corporate Financial Leverage

The Effects of Board Characteristics and Ownership Structure on the Corporate Financial Leverage

Supply Chain Finance in China: Business Innovation and Theory Development

The Inner Structure of Pyramid and Capital Structure: Evidence from China

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