Debt financing structure, ownership concentration and firm performance: a comparison of the listed state-owned and non-state-owned CMNEs

Wu, Sihong

doi:10.1080/14765284.2019.1615243

Cited by 8 publications

(7 citation statements)

References 34 publications

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“…In the Chinese context, the largest shareholder hold 37% of the total shares, and the top 10 shareholders hold 53% of total shares (Wu, 2019). The stock market in China is criticised for extensive insider trading and speculation by controlling shareholders.…”

Section: Moderating Effect Of Ownership Concentrationmentioning

confidence: 99%

“…The extant literature (Deb et al, 2017;La Rocca & Cambrea, 2019;Pouraghajan et al, 2012;Sardo & Serrasqueiro, 2018;Wu, 2019), suggests several control variables that can affect firm performance. We included: Leverage (LEV) as the total debt divided by total assets; Firm size (SIZE) as the natural logarithm of total assets; Set to 1 if state ownership in firm i in year t is less than the median value of the sample in fiscal year t, otherwise 0 (Gao & Kling, 2008;Kim et al, 2005;Shan, 2013).…”

Section: Measurement Of Control Variablesmentioning

confidence: 99%

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Cash holdings and firm performance relationship: Do firm-specific factors matter?

Jiang

Ahmad

Jebran

et al. 2020

Economic Research-Ekonomska Istraživanja

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This study shows how the relationship between cash holdings and firm performance is moderated by several firm-specific factors such as state-ownership, corporate governance attributes, family ownership, and ownership concentration. By considering a sample of Chinese firms, this study provides strong evidence that the cash holdings and performance association is significantly moderated by firm-specific attributes. Specifically, this study documented that cash holdings improve the performance of firms having strong corporate governance. Further, family ownership and ownership concentration negatively affect the relationship between cash and performance, while state-ownership positively moderates this relationship. Overall, the findings elaborate that firm-specific attributes are important factors influencing the association between cash holdings and firm performance.

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Section: Moderating Effect Of Ownership Concentrationmentioning

confidence: 99%

Section: Measurement Of Control Variablesmentioning

confidence: 99%

Cash holdings and firm performance relationship: Do firm-specific factors matter?

Jiang

Ahmad

Jebran

et al. 2020

Economic Research-Ekonomska Istraživanja

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“…Capital structure is defined as a mixture of different sources of finance of a company, represented by equity capital, preference shares, and debt. In addition, capital structure is the financing structure of the general operations and growth of a company, which involves a mixture of specific retained earnings, short-term debt, long-term debt, equity capital and preferred stock (Awais et al, 2016;Wu, 2019). In other words, capital structure is the use of diverse sources of capital to finance the operations of a firm to achieve its strategic goals (Suardi & Noor, 2015).…”

Section: Capital Structurementioning

confidence: 99%

“…These authors maintain that capital structure is irrelevant to a firm's performance. However, contemporary studies such as Goh et al (2018), Nenu et al (2018) and Wu (2019) demonstrated that capital structure is relevant and therefore influences the performance and value of firms. According to these authors, an inappropriate combination of finance can be challenging to managers and the prospects of firms.…”

Section: Introductionmentioning

confidence: 99%

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Capital structure, firm value and managerial ownership: Evidence from East African countries

Doorasamy

2021

Investment Management and Financial Innovations

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East African firms are experiencing economic growth and are attracting foreign investment in the form of equity capital and loans. However, there are concerns about whether the structure of the capital and managerial ownership of these firms can influence their growth. The study examined the relationship between capital structure and firm value in East African countries and how managerial ownership influences this relationship. Sixty-five (65) listed firms in East Africa were selected for the study. The study employed a GMM estimation technique. The evidence showed that leverage has a significantly negative impact on the value of firms in East Africa, suggesting that higher debt would result in a decrease of firm value. The implication of this result is that firms can increase their value by reducing their leverage level. Moreover, the study found that managerial ownership had an inverse and significant impact on the relationship between leverage and firm value. The conclusion is that leverage decreases the value of firms in East Africa. Another conclusion is that owner-managers can use debt capital more effectively to increase firm value than non-owner managers. The implication of this result is that firms managed by owners can borrow more for their operations because it would increase the value of the firms. This study is the first to examine how managerial ownership moderates the relationship between capital structure and the value of firms in East Africa, which has a unique political, social, cultural and economic environment.

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The effect of corporate governance on firm performance: perspectives from an emerging market

Miao,

Khan,

Ghauri

et al. 2023

Economic Research-Ekonomska Istraživanja

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Debt financing structure, ownership concentration and firm performance: a comparison of the listed state-owned and non-state-owned CMNEs

Cited by 8 publications

References 34 publications

Cash holdings and firm performance relationship: Do firm-specific factors matter?

Cash holdings and firm performance relationship: Do firm-specific factors matter?

Capital structure, firm value and managerial ownership: Evidence from East African countries

The effect of corporate governance on firm performance: perspectives from an emerging market

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