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Ownership Structure as a Determinant of Capital Structure - An Empirical Study of DAX Companies

Author: Christian Funke

Publisher: GRIN Verlag

Published: 2007-07

Total Pages: 109

ISBN-13: 3638702251

Diploma Thesis from the year 2003 in the subject Business economics - Investment and Finance, grade: 1,1 (A), European Business School - International University Schlo Reichartshausen Oestrich-Winkel (Endowed-Chairf for Corporate Finance and Capital Markets), language: English, abstract: The idea that the general characteristics of a firm's ownership structure can affect performance has achieved considerable attention and related research brought forward relatively consistent empirical evidence e.g. on the positive impact of managerial ownership on firm performance. However, the evidence on the relation between ownership and capital structure is less consistent and numerous, although there are good reasons to believe that there may be such a relationship. Since the capital structure irrelevance propositions of MODIGLIANI/MILLER economists have devoted considerable time to studying cross-sectional and time-series variations in capital structure. More recent work following the seminal contribution by JENSEN/MECKLING has employed an agency theory perspective in the search for an explanation of capital structure variations. With this managerial perspective capital structure is not only explained by variations in internal and external contextual factors of the firm, but also by the values, goals, preferences and desires of managers. Corporate financing decisions are influenced by managers' incentives and the incentives for managers to act opportunistically can be influenced by the ownership structure of the firm. However, most empirical work analyzing a firm's capital structure in cross-sectional and time-series studies ignores the equity ownership structure as a possible explanatory variable. This can be partly explained by problems associated with the availability of ownership data, when compared to readily available accounting and market data on other relevant variables. Notwithstanding, it entails a problem of model misspecification as omitting a relevant variable

Ownership Structure as a Determinant of Capital Structure - An Empirical Study of DAX Companeis

Author: Christian Funke

Publisher: GRIN Verlag

Published: 2012

Total Pages: 110

ISBN-13: 9783867467704

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Diploma Thesis from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: 1.1, European Business School - International University Schloss Reichartshausen Oestrich-Winkel, language: English, abstract: Empirische Diplomarbeit die mit einer multivariaten Regression untersucht, ob sich die beobachtete Variabilitat der Kapitalstrukturen von Unternehmen durch unterschiedliche Eigentumerstrukturen erklaren lasst

Ownership Structure as a Determinant of Capital Structure - An Empirical Study of DAX Companeis

Author: Christian Funke

Publisher: GRIN Verlag

Published: 2012-03-02

Total Pages: 105

ISBN-13: 3867469660

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Diploma Thesis from the year 2004 in the subject Business economics - Business Management, Corporate Governance, grade: 1.1, European Business School - International University Schloß Reichartshausen Oestrich-Winkel, language: English, abstract: Empirische Diplomarbeit die mit einer multivariaten Regression untersucht, ob sich die beobachtete Variabilität der Kapitalstrukturen von Unternehmen durch unterschiedliche Eigentümerstrukturen erklären lässt.

Equity Ownership and Capital Structure Determinants

Author: Fitriya Fauzi

Publisher:

Published: 2018

Total Pages: 22

ISBN-13:

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This paper investigates equity ownership and capital structure determinants of New Zealand-listed firms. This study is an extension from previous studies conducted by Boyle & Eckhold (1997) and Wellalage & Locke (2012). Boyle & Eckhold and Wellalage & Locke examine capital structure choices in New Zealand, especially the debt choices of NZ's corporate firms. Using a balanced-panel of 79 New Zealand-listed firms, this study employs a balanced panel method, using dynamic-panel Instrumental Variable-Generalised Methods of Moments (IV-GMM) as it corrects heteroskedasticity and endogeneity problems which might result in an unbiased and inconsistent estimation. All variables, apart from non-debt tax shields and profitability exhibit a significant impact on total debt. Overall, these variables confirm the trade-off theory, even though the coefficient for non-debt tax shield confirms the pecking-order theory. The empirical evidence is less conclusive than that of previous studies in other countries, particularly Australia where capital structure confirms the pecking-order theory (Qiu & La, 2010). Overall, the trade-off theory is more appropriate in explaining New Zealand listed firms' capital structure. In addition, it appears that the capital structure theories applied to each study are contradictory, even though the result is in line with Boyle & Eckhold and Wellalage & Locke which find that those firms' specific characteristics play a significant role in determining the firm's debt level. However, the contradictory results may be due to the different methods, time frames and scope of the samples used.

Equity Ownership and Performance

Author: Kerstin Groß

Publisher: Physica

Published: 2007-05-07

Total Pages: 396

ISBN-13:

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The empirical studies presented in this book model the endogeneity by applying the simultaneous equations methodology on the relation of ownership and financial performance as well as on different ownership dimensions themselves. Its final model comprises a four equations system containing performance, general ownership concentration, managerial and institutional ownership.

FDI and Determinants of Capital Structure

Author: Younghwan Kim

Publisher:

Published: 2005

Total Pages: 134

ISBN-13:

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Corporate Ownership, Capital Structure and Investment

Author: Mika Ihamuotila

Publisher:

Published: 1994

Total Pages: 182

ISBN-13: 9789517026611

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Ownership Structure and R&D

Author: Fabrizio Rossi

Publisher:

Published: 2018

Total Pages: 29

ISBN-13:

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The objective of this study is to explore the relationship between research and development outlays (R&D) and firm ownership structure for the public corporations listed on the Italian stock exchange. There is literature on the impact of corporate governance on firms' innovation, and specifically on the relation between ownership structures and innovation. However, related empirical research is still in its infancy, with most contributions focused on the USA. Using a sample of 369 firm-year observations over the period 2005-2013, we investigate the relationship between R&D outlays and ownership structure estimating both a the fixed-effects panel model and a dynamic panel data system-GMM model. We consider various indicators of corporate governance, such as ownership concentration, board ownership, and institutional investors. Our findings reveal a negative relationship between R&D outlays and ownership concentration. Furthermore, we find a positive relationship between R&D investments and institutional investors, and a positive relationship between R&D outlays on the one hand and both firm size and firm age on the other hand. Finally, we find a negative relationship between R&D outlays and the debt-to-capital ratio.

Ownership Structure and Firm Performance

Author: Santanu K. Ganguli

Publisher:

Published: 2009

Total Pages:

ISBN-13:

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The inverse relationship between the diffused ownership structure and firm performance remains a debatable issue since the seminal thesis of Berle and Means (1932). Studies by Demsetz and Villalonga (2001) and others did not find any systematic relationship between ownership structure and firm performance treating the former as endogenous variable. Cho (1998) found performance (Tobin's Q) affected ownership structure but not the vice versa.In the backdrop, we have examined the relationship between performance and ownership structure of a sample of 98 mid-cap companies listed in the National Stock Exchange (NSE) of India as mid-cap sector is considered high growth sector of the economy.In India the shareholders are broadly divided into two categories - promoter shareholders and non-promoter shareholders. Promoter shareholders are those who are in overall control over the affairs of the company irrespective of their percentage/fraction of shareholding. Our results suggest that promoter's shareholding (measure of concentration) is statistically significant in explaining performance. When concentration is treated as endogenous, the same is also found to be dependent on performance. The ownership of high growth sector of the economy continues to remain concentrated even in post-1992 economic liberalization impacting performance amid the general perception that substantial diffuseness has occurred.

Empirical Study on Ownership Structure and Firm Performance

Author: Arunima Haldar

Publisher:

Published: 2018

Total Pages: 8

ISBN-13:

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Researchers have come up with varied assertions with regard to the relationship between ownership structure and firm performance. Positive as well as negative relationships at differing levels of equity holdings by managers have been suggested by researchers leading to inconclusive results. Findings suggests that promoter controlled firm's performance is better than manager controlled ones, but empirical assertion for the same has been lacking in developing countries. This research focuses on investigating empirically the efficacy of ownership groups in enhancing corporate performance in India, a developing nation. The study analyzes large cap firms (BSE 500) for the period 2000-2008 using fixed effect technique by taking into account both accounting as well as market based measures of performance. Findings suggest that promoter's are the major contributors in the firm performance whereas non promoter's hinders the firm performance.