Corporate governance, ownership structure and capital structure: evidence from Chinese real estate listed companies

Feng, Yi; Hassan, Abeer; Elamer, Ahmed A.

doi:10.1108/ijaim-04-2020-0042

Cited by 79 publications

(103 citation statements)

References 99 publications

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“…This result is consistent with findings reported with Abdallah (2018) El-Dyasty (2017. This result may expand another strand of research (Alshbili et al, 2019;Elamer et al, 2018;Feng et al, 2020). Specifically, future research may explore the association among different auditor types and corporate social responsibility disclosures, risk-taking and capital structure.…”

Section: Audit Quality In Emerging Marketssupporting

confidence: 89%

The effect of auditor type on audit quality in emerging markets: evidence from Egypt

El-Dyasty

Elamer

2020

IJAIM

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Purpose Although a number of studies suggest that big audit firms provide higher audit quality in strict legal environments, empirical evidence remains inconclusive. As little is known about the effect of auditor type on audit quality in less strictly legal environments, this study aims to investigate the impact of auditor type on audit quality in the Egyptian market. Design/methodology/approach Data of Egyptian-listed companies during the period 2011–2018 are used. To examine the impact of auditor type on audit quality, ordinary least square regression and robust standard errors clustered at year and industry level are used. This study uses discretionary accruals as a proxy for audit quality. Several additional analyzes are conducted to assess the robustness of the main results, including alternative measures of audit quality and auditor type. Findings The results show that audit firms tend to provide higher audit quality when they are affiliated with a foreign audit firm. However, Big 4 auditors do not provide higher audit quality compare to their counterparts. Additionally, the governmental agency, accountability state authority, that monopolize audit function in state-owned companies do not appear to be associated with higher audit quality. Finally, local audit firms have a negative association with audit quality. This may be their strategy to secure future clients that seek low-quality audits. Research limitations/implications This study suggests that affiliation with foreign audit firms will help the Egyptian firms to develop their abilities by using advanced technology and techniques and transfer rare expertize to the Egyptian auditors. This study also shows that the strategy adopted by many Egyptian audit firms to affiliate with foreign auditors reflects the desire of these firms to be included in one tier alongside Big 4 audit firms to increase their market share under a claim of providing a higher audit quality. Originality/value This study adds to the rare but growing body of literature by investigating how auditor type affects audit quality in the context of less strictly legal environments. The results are important, as investors, standards-setters and regulators have growing concerns over audit quality since the Enron scandal. The findings suggest that audit quality depends on auditor type. These findings have important implications for investors, standards-setters and auditors interested in auditor oversight, audit quality and auditor choice.

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Section: Audit Quality In Emerging Marketssupporting

confidence: 89%

The effect of auditor type on audit quality in emerging markets: evidence from Egypt

El-Dyasty

Elamer

2020

IJAIM

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“…Salah satu pertimbangan menjelaskan bahwa perusahaan dengan profitabilitas yang tinggi tentunya memiliki arus kas yang lancar sehingga tidak diperlukan untuk memanfaatkan sumber dana dari pihak eksternal. Tetapi terdapat penelitian lain juga yang menjelaskan bahwa perusahaan akan secara sengaja meningkatkan utang sebagai pengurangan pajak ketika mempunyai profitabilitas tinggi (Feng et al, 2020).…”

Section: Profitabilitasunclassified

“…Mabrouk dan Boubaker (2020), Feng et al (2020), Hunnayan (2020), dan Sikveland dan Zhang (2020) mendukung bahwa adanya pengaruh signifikan negatif oleh profitabilitas dengan struktur modal. Hal ini sesuai dengan pecking order theory yang menjelaskan perusahaan dengan profitabilitas tinggi akan menggunakan cadangan internal terlebih dahulu sehingga tidak membutuhkan dana dari eksternal.…”

Section: Pembahasanunclassified

Analisis faktor-faktor yang mempengaruhi struktur modal di Bursa Efek Indonesia

Hendi

Susanti

2021

JEM

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Capital structure is a combination of capital and debt so that it is very influential on the company's financial position. To finance operations, companies can use funds from debt or capital. However, the company's management must know whether the company is able to bear the financial risks or costs of these funds to prevent the company's bankruptcy. The purpose of this research is to analyze the factors that influence the capital structure. The independent variables are corporate tax rates, non-debt tax savings, investment opportunity sets, sales growth, and profitability. The sample data tested were obtained from the annual reports of companies listed on the Indonesia Stock Exchange (IDX). The reporting period used in this study was five years and amounted to 2,210. The data obtained were then processed through the SPSS 25 and Eviews 10 systems. The results revealed that corporate tax rates and profitability have a significant negative effect on capital structure. There is a significant positive effect of the investment opportunity set variable and sales growth on the owned capital structure. Another finding is that non-debt tax savings have no significant effect on capital structure.

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“…The larger the size of the company, the higher the confidence of creditors (debt holders) in providing loans to the company; thus, large companies tend to have higher debt (Al-Hunnayan, 2020;Al-Ajmi et al, 2009;Czerwonka & Jaworski, 2021;Dawar & M. Hull, 2014;Feng et al, 2020;Guizani & Ajmi, 2021;Kraus & Litzenberger, 1973;Muhammad, Ei Yet, Tahir, & Nasir, 2020;Yu & Yu, 2012). However, according to the pecking order theory, information asymmetry is more likely to occur in large companies.…”

Section: Firm Sizementioning

confidence: 99%

“…The operational definition of variables is explained based on relevant concepts and theories, with the aim of not causing different perceptions. The variables referred to in this study are capital structure proxied by short-term debt, long-term debt, and total debt (Alipour et al, 2015;Bolarinwa & Adegboye, 2020;Feng et al, 2020;Guizani & Ajmi, 2021;Tse & Rodgers, 2014). Factors commonly used in testing capital structure theories such as profitability, firm growth, firm size, tangibility, non-debt tax shield (NTDS) were used in this study (Ajay & Madhumathi, 2015;Al-Ajmi et al, 2009;Bajaj et al, 2020;Bukair, 2019;Elvin & Hamid, 2016;Fekadu, 2020;Ghosh, 2018;Haron, 2016;Rani et al, 2019;Sheikh & Qureshi, 2017;Toumi, 2019).…”

Section: Operational Definition and Measurement Of The Variablementioning

confidence: 99%

Income Diversification and Capital Structure: International Banks Evidence

Octavianus¹,

Fachrudin²,

Sadalia³

et al. 2021

theijbm

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This study aims to contribute to the literature on a corporate capital structure by analyzing the effect of income diversification on the capital structure of international banking companies. This study uses panel data from 32 global banking companies in 2010-2019 with 320 firm-year observation obtained from stock exchanges in each country. The generalized method of moments is used as a statistical analysis tool for panel data. The results show that the income diversification carried out by international banking companies has a positive effect with high significance on the company's short-term debt structure. Therefore, income diversification can be a factor affecting the capital structure of international banking companies. Previous studies examined determinants of capital structure such as profitability, tangibility, firm size, firm growth, firm age, and non-debt tax shield. The findings of this study add the income diversification variable to the determinants of capital structure. This study is expected to bring benefits to banking management, investors, and regulators in the banking sector, as well as to make new contributions to the literature on corporate capital structure.

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Corporate governance, ownership structure and capital structure: evidence from Chinese real estate listed companies

Cited by 79 publications

References 99 publications

The effect of auditor type on audit quality in emerging markets: evidence from Egypt

The effect of auditor type on audit quality in emerging markets: evidence from Egypt

Analisis faktor-faktor yang mempengaruhi struktur modal di Bursa Efek Indonesia

Income Diversification and Capital Structure: International Banks Evidence

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