Effects of state ownership on companies’ capital structure and profitability: Estimation analysis before and after the Lehman shock

Nhung, Lai Thi Phuong; Okuda, Hidenobu

doi:10.1016/j.asieco.2015.04.001

Cited by 26 publications

(21 citation statements)

References 12 publications

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“…The results show that the effect of state ownership on leverage is positive and statistically significant in high-income countries (Model 1), while in lower-middle-income countries its effect is negative and statistically significant (Model 3). These findings are also consistent with other studies (Dewenter & Malatesta, 2001;Firth, Lin, & Wong, 2008;Nhung & Okuda, 2015). In high-income countries, state-owned enterprises carry 6.40% more debt than nonstate-owned enterprises, while in lower-middle-income countries, state-owned enterprises carry 8.1% less debt than their counterpart.…”

Section: Resultssupporting

confidence: 92%

Does state ownership really matter for capital structure in selected G-20 economies?

Amin

Besim

Haq

2019

Economic Research-Ekonomska Istraživanja

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The effect of state ownership on the capital structure decisions of enterprises in selected G-20 countries is estimated using financial and accounting data of 252 state-owned and 6503 non-stateowned firms for the period 2011-2015. The results indicate that state ownership is positively associated with leverage in all the selected G-20 countries. However, this phenomenon changed when countries were considered according to their income levels because state-owned enterprises in high-income countries carry more debt, while the opposite is true for lower-middle-income countries. The results were also divergent when the effects of various firm-specific variables were compared between state and non-state-owned enterprises across the development spectrum. ARTICLE HISTORY

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Section: Resultssupporting

confidence: 92%

Does state ownership really matter for capital structure in selected G-20 economies?

Amin

Besim

Haq

2019

Economic Research-Ekonomska Istraživanja

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“…He suggested that debt is less likely to be an effective governance tool to discipline the managers of government-controlled firms. Hardiyanto et al (2015) and Nhung and Okuda (2015) found a negative impact of government ownership on the firms' financial leverage. Hence it is hypothesized that:…”

Section: Government Ownershipmentioning

confidence: 97%

The Simultaneous Effect of Corporate Ownership on Dividends and Capital Structure: Malaysian Evidence

Saleh

Ibrahim²,

Shahar³

2020

IJFR

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Most of the researchers analyzed the impact of ownership structure on dividends and capital structure decisions separately. Drawing upon preceding empirical studies, the interdependence between dividends and capital structure raises the potential of the endogeneity bias when interdependent factors are segmented. Therefore, this study examined the effect of corporate ownership structure on capital structure and dividend policy simultaneously. This study utilized 407 Malaysian-listed firms over the period from 2012 to 2016 and adopted simultaneous modelling using 2SLS and 3SLS regression techniques. The results changed markedly in sign, magnitude and significance when moving from OLS estimator to 2SLS and 3SLS estimators. The findings show that both dividend and capital structure policies have positive interdependence. The substantial, family, government and foreign ownership affect dividends positively and capital structure negatively. The study provides various theoretical and practical implications to improve corporate governance and corporate financial policies. This study contributes to the growing literature on corporate finance and corporate ownership. Particularly, it provides simultaneous investigation on the effect of family, government and foreign ownership on dividends and capital structure for Malaysian firms.

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“…Primeiramente, a firma financia seus projetos com a utilização de recursos internos, através da retenção de lucros. Se os recursos não forem suficientes, a empresa optaria pelo financiamento externo, por meio da dívida, e, em último caso, emitiria ações, o que não é desejável pelos shareholders, pois essa emissão reflete o valor da ação da companhia (Alves et al, 2015;Florackis, Kanas, & Kostakis, 2015;Myers & Majluf, 1984;Nhung & Okuda, 2015).…”

Section: Correntes Teóricas Da Estrutura De Capitalunclassified

“…Diante do exposto, é possível dizer que esses resultados estão de acordo com o preconizado pela Teoria Peckin Order, pois se presume a existência de uma hierarquia no tocante às fontes de financiamento. Em primeiro lugar, por recursos internos (fluxo de caixa -EBITDA) e em seguida por recursos de terceiros (endividamento) (Alves et al, 2015;Florackis, Kanas, & Kostakis, 2015;Myers & Majluf, 1984;Nhung & Okuda, 2015). Também, pela Teoria da Agência, porque com o endividamento, além da possível redução dos custos de agência, diminui-se o fluxo de caixa livre, o que reduz os investimentos discricionários dos gestores (Frank & Goyal, 2003;Jensen & Meckling, 1976;Kayo & Fama, 2004;Medeiros & Daher, 2008).…”

Section: Ibepesunclassified

Influência da estrutura de capital nos investimentos em inovação das indústrias listadas na BM&FBOVESPA

Almendra

Vasconcelos

Aragão

et al. 2017

RECADM

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Effects of state ownership on companies’ capital structure and profitability: Estimation analysis before and after the Lehman shock

Cited by 26 publications

References 12 publications

Does state ownership really matter for capital structure in selected G-20 economies?

Does state ownership really matter for capital structure in selected G-20 economies?

The Simultaneous Effect of Corporate Ownership on Dividends and Capital Structure: Malaysian Evidence

Influência da estrutura de capital nos investimentos em inovação das indústrias listadas na BM&FBOVESPA

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