Multinationality and capital structure dynamics: A corporate governance explanation

Gyimah, Daniel; Kwansa, Nana Abena; Kyiu, Anthony; Sikochi, Anywhere

doi:10.1016/j.irfa.2021.101758

Cited by 20 publications

(11 citation statements)

References 97 publications

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“…Studies have identified links to the measurement of corporate governance as ownership structure, managerial and institutional shareholding size, board composition comprising board size, outside directors, Chief Executive Officer (CEO) duality, frequency of board meetings, board experience and gender diversity (Albanez & Schiozer, 2022;Ezeani et al, 2022;Grabinska et al, 2021;Ibrahimy & Aidi, 2021;Thakolwiroj & Sithipolvanichhgul, 2021). Gyimah et al (2021) measured the quality of corporate governance using the G-Index and E-index.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In much of the research in recent years on the nexus between corporate governance and capital structure, scholars reviewed the influence of intervening variables of corporate governance on capital structure, precisely gender diversity (Zaid et al, 2020;García & Herrero, 2021); board attributes (Ali et al, 2021a;Ali et al, 2021b); board quality (Gyimah et al, 2021;Nguyen et al, 2021); board composition and characteristics (Ezeani et al, 2022;Grabinska et al, 2021;Lartey et al, 2020); and board ownership structure (Ibrahimy & Aidi, 2021). However, most of the results are inconsistent.…”

Section: Introductionmentioning

confidence: 99%

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Effect of corporate governance on the capital structure on non-financial firms in developing countries: A Qualitative Approach

Damina¹,

Muritala²,

Umar³

2022

OJBM

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This study adopted a qualitative technique to examine the effect of corporate governance on the capital structure of non-financial firms in developing countries from 2011 to 2022. The study reviewed thematically evidence from 50 previous studies that examined the effect of board size on leverage. The study demonstrates an inconsistent outcome, with 52 per cent of findings positive, 32 negative and 17 mixed results. The study also found that adopting a single theory is insufficient to explain the rationale of the relationships between corporate governance and capital structure. While most studies adopted secondary data, future studies may focus on using primary data and other methods instead of regression or multiple regression analysis.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Effect of corporate governance on the capital structure on non-financial firms in developing countries: A Qualitative Approach

Damina¹,

Muritala²,

Umar³

2022

OJBM

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“…Solving the problems of increasing the level of capitalization and improving the management system in general serves as a significant reserve for optimizing functioning of any business structure in modern conditions (Gyimah et al, 2021).…”

Section: Ble 1 List Of the Financial Status Of Enterpriseindicators A...mentioning

confidence: 99%

Моделювання Впливу Чинників Економічного Середовища На Ринкову Вартість Корпорацій: Приклад України

Rubakha¹,

Popivniak²,

Paslavska³

et al. 2021

ФКДПТП

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Abstract. Capitalization is an important indicator of investment attractiveness, profitability and stability of enterprises in the corporate sector. In this context, analysis of the factors influencing the market capitalization of enterprises is important for managing corporate finances.The aim of the article is to determine the most significant factors of the micro- and macroeconomic environment that influence the capitalization of Ukrainian enterprises based on the example of energy enterprises through correlation-regression analysis and to suggest ways to improve corporate management and algorithms for taking into account economic factors in the strategy of growth of market capitalization. The article explains the relationship between macroeconomic indicators of Ukraine's development, financial condition of enterprises and their market capitalization based on factor and correlation analysis. A mathematical model is constructed, which shows the influence of the main macroeconomic factors and financial condition of economic entities (enterprises of the energy sector of Ukraine) on the level of their market capitalization (5 latent factors determine the level of enterprises capitalization by 93.8%). An algorithm for determining and taking into account the impact of the economic environment on the market capitalization of enterprises can improve the quality of corporate company management in the context of increasing their market capitalization are suggested. Proposals on the need to develop a corporate governance system in the corporate sector as a guarantee of market capitalization growth are developed.In particular, a functional model of corporate governance is proposed. The use of the model will ensure the formation of an effective stable and flexible organizational structure of management, regulate the interaction between management and shareholders, will form the appropriate corporate culture and image of the company, as well as ensure the appropriate level of financing, effective dividend policy, high-quality management of the property and securities of the company, its financial results, investments and risks. Keywords: capitalization, corporate management, market value, mathematical model, economic environment. JEL Classification G32, C33 Formulas: 6; fig.: 4; tabl.: 5; bibl.: 26.

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“…Cost efficiency is closely related to company policy, such a company decision in determining capital structure (Ulbert et al, 2022). The capital structure is an important element for an enterprise (Avezum et al, 2022;Gyimah et al, 2021). If the capital structure of a company is optimal (Nicodano & Regis, 2019;Wu & Liu, 2022), investors will be interested in investing in the company.…”

Section: Introductionmentioning

confidence: 99%

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

Orbaningsih

2022

Econ. Bus. Account. Soc. Rev

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The purpose of this study is to determine the effect of business risk and profitability on the capital structure with liquidity as a moderation variable. Quantitative methods were used in the study. The sample collection used purposive sampling of 11 companies listed on the IDX during 2017-2020. The analysis used moderation regression and classical assumption testing. The results showed that business risk and profitability affect the capital structure. Meanwhile, moderation variables are able to moderate the influence of business risk on the capital structure and are unable to moderate the effect of profitability on the capital structure.

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Multinationality and capital structure dynamics: A corporate governance explanation

Cited by 20 publications

References 97 publications

Effect of corporate governance on the capital structure on non-financial firms in developing countries: A Qualitative Approach

Effect of corporate governance on the capital structure on non-financial firms in developing countries: A Qualitative Approach

Моделювання Впливу Чинників Економічного Середовища На Ринкову Вартість Корпорацій: Приклад України

Effect of Business Risk and Profitability on Capital Structure with Likuiditas As Moderation

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