Capital structure and value of reported earnings: evidence from an emerging market

Farooq, Omar; Asgarov, Ziya; Guliyev, Ayaz; Islam, Toghrul; Kalinina, Yuliya; Pashayev, Zakir

doi:10.1080/13504851.2016.1221036

Cited by 3 publications

(2 citation statements)

References 14 publications

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“…Hence, many researchers have recommended exploring whether there is a complementary association between CS, CG, and firm performance [10,27,73]. This recommendation has arisen because CS as a third variable can be considered a discipline mechanism [30,31] and is thus expected to have a positive impact on the relationship between CG and firm performance [5,59,70,74,75]. Maranho and Leal [76] have suggested that a number of different moderators can help explain the relationship between CG and performance, and it has been postulated that CS is one of the most important e.g., Refs.…”

Section: Capital Structure As a Moderatormentioning

confidence: 99%

“…This implies that the interaction term has a significant marginal effect on both of the performance indicators of Jordanian non-financial listed firms in each of the models used. Thus, the CS becomes a complementary control mechanism, suggesting that the adoption of the CS as a monitoring mechanism increased the effectiveness of the CGI [75]. Moreover, it means that CS affects the relationship between CGI and future performance, implying its interaction adds incremental information content for explaining the variability of future firm performance.…”

Section: Multivariate Regression Analysesmentioning

confidence: 99%

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The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure

et al. 2022

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This study aims to explore whether capital structure (CS) has a contingent role in the relationship between corporate governance (CG) quality and firm performance. The empirical findings indicate that CG quality had a positive and significant effect on the performance of Jordanian non-financial firms listed on the Amman Stock Exchange (ASE) from 2014 to 2019. Additionally, the moderate effect of the CS reinforces this relationship. These results are robust to alternative econometric specifications and variable definitions. This study utilizes certain firm-specific characteristics to represent the CS to assess its role as a moderating variable in the relationship between CG quality and firm performance. This study makes a contribution to the literature by showing that CS can strengthen the relationship between CG quality and firm performance. The results have important managerial implications for the practice of CG in developing countries. Firms in developing countries can enhance performance by implementing and abiding by good governance practices. Moreover, firms in developing countries should adopt effective financial strategies regarding CS to enhance the relationship between CG quality and firm performance. Finally, potential investors should consider the debt level in the CS of non-financial firms in Jordan when making investment decisions.

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Section: Capital Structure As a Moderatormentioning

confidence: 99%

Section: Multivariate Regression Analysesmentioning

confidence: 99%

The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure

et al. 2022

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Capital Structure and Value of Advertising Expenditures: Evidence from an Emerging Market

Pashayev

Farooq

2019

Int Adv Econ Res

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Information Asymmetry and firm value: Is Vietnam different?

Huynh

Duong

2020

The Journal of Economic Asymmetries

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Capital structure and value of reported earnings: evidence from an emerging market

Cited by 3 publications

References 14 publications

The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure

The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure

Capital Structure and Value of Advertising Expenditures: Evidence from an Emerging Market

Information Asymmetry and firm value: Is Vietnam different?

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