Capital Structure, Management Ownership and Large External Shareholders: A UK Analysis

Short, Helen; Keasey, Kevin; Duxbury, Darren

doi:10.1080/1357151021000010382

Cited by 74 publications

(62 citation statements)

References 35 publications

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“…For example, Brailsford et al (2002), Short et al (2002), and King and Santor (2008) report a positive effect of concentrated ownership on capital structure and firm performance, while Duc Nam and Thi Phuong Vy (2013) report a negative impact of foreign ownership on firm performance and a positive impact on capital structure. Anderson and Reeb (2003) find no significant effect.…”

Section: Firm Performance Ownership and Capital Structure: A Selectmentioning

confidence: 99%

“…Anderson and Reeb (2003) find no significant effect. Managerial ownership is found to be marginal, or even negative if large shareholders are not present (Short et al, 2002;Wahba, 2013). The link between firm technical efficiency, capital structure and ownership structure has been even less investigated, though a positive association was found by Margaritis and Psillaki (2010).…”

Section: Firm Performance Ownership and Capital Structure: A Selectmentioning

confidence: 99%

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Corporate efficiency in Europe

Hanousek

Kočenda

Shamshur

2015

Journal of Corporate Finance

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Using a stochastic frontier model and a comprehensive dataset, we study factors that affect corporate efficiency in Europe. We find that (i) larger firms are less efficient than smaller firms, (ii) greater leverage contributes to corporate efficiency, and (iii) high competition is less conductive to efficiency than moderate or low competition. In terms of ownership, we find that (iv) efficiency increases when a majority owner must deal with minority shareholders and that (v) domestic majority owners improve efficiency more than foreign majority owners when no minority shareholders are present, but (vi) the opposite is true when minority shareholders hold a substantial fraction of the firm's equity. In the analysis, we distinguish between a pre-crisis period (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008) and a post-crisis period (2009)(2010)(2011), and find that our results are sensitive to the period of observation.

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Section: Firm Performance Ownership and Capital Structure: A Selectmentioning

confidence: 99%

Section: Firm Performance Ownership and Capital Structure: A Selectmentioning

confidence: 99%

Corporate efficiency in Europe

Hanousek

Kočenda

Shamshur

2015

Journal of Corporate Finance

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“…Intangibility previous studies have used several measures of tangibility assets (Jensen & Meckling, 1976): inventory plus gross plant and equipment to total assets (Titman & Wessels, 1988); and the ratio of tangible assets to total assets (Rajan & Zingales, 1995;Short, Keasey & Duxbury, 2002). In our paper, we will approximate intangibility by the ratio of total intangible assets divided by total assets.…”

Section: The Explanatory Variablesmentioning

confidence: 99%

Impact of Ownership Structure on Debt Equity Ratio: A Static and a Dynamic Analytical Framework

Said¹

2013

IBR

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This study examines the determinants of capital structure as part of the agency theory. French corporate structure with its high corporate concentration provides able us to analyze how ownership structure affects debt policy. Emphasis is placed on the role of insiders and outsiders ownership in explaining the debt ratio. The empirical study examined a sample of French companies listed on SBF 250 index and observed over the period [1997][1998][1999][2000][2001][2002][2003][2004][2005][2006][2007]. Test results show a non linear relationship between managerial ownership and capital structure. Outside shareholdings do not play a disciplinary role to effectively control the behavior of managers in a static framework. However, for high levels of managerial ownership, outside shareholdings does not significantly affect debt ratio. In addition, in a dynamic framework, we document a negative and a significant effect of external investors on debt equity ratio. Furthermore, the effect of management ownership is not significant.

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“…These steps may include threats to managerial security through involuntary CEO replacements and the replacement in the board of directors. Short, Keasey and Duxbury (2002) examine the influence of ownership structure on the financial structure of UK firms. Results reveal that there exist positive relationship between management ownership and leverage ratio whereas negative relationship is observed between large external equity holder's ownership and financial leverage.…”

Section: Introductionmentioning

confidence: 99%

Impact of Ownership Structure and Corporate Governance on Capital Structure of Pakistani Listed Companies

Hasan¹,

Butt²

2009

IJBM

109

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This paper explores the relationship between corporate governance and capital structure of listed companies in an emerging equity market, Pakistan. The study covers the period 2002 to 2005 for which firm level data for 58 randomly selected non-financial listed companies from Karachi Stock Exchange has been examined by using multivariate regression analysis under fixed effect model approach. Measures of corporate governance employed are board size, board composition, and CEO/Chair duality. Impact of shareholding on financing decisions has also been examined by using managerial shareholding and institutional shareholding. Similarly influence of controlled variables like firm size and profitability on firms' financing mechanism is also investigated. Results reveal that board size and managerial shareholding is significantly negatively correlated with debt to equity ratio. However corporate's financing behavior is not found significantly influenced by CEO/Chair duality and the presence of non-executive directors on the board. However, control variables firm size and return on assets are found to have a significant effect on capital structure. No temporal effects are observed. Therefore results suggest that corporate governance variables like size and ownership structure and managerial shareholding play important role in determination of financial mix of the firms.

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Capital Structure, Management Ownership and Large External Shareholders: A UK Analysis

Cited by 74 publications

References 35 publications

Corporate efficiency in Europe

Corporate efficiency in Europe

Impact of Ownership Structure on Debt Equity Ratio: A Static and a Dynamic Analytical Framework

Impact of Ownership Structure and Corporate Governance on Capital Structure of Pakistani Listed Companies

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