Peer-Reviewed Journal Details
Mandatory Fields
Flavin, T., and T. O'Connor.
2013
September
International Review of Finance
The Effects of Ownership Structure on Corporate Financing Decisions: Evidence from Stock Market Liberalization
Published
3 ()
Optional Fields
CAPITAL STRUCTURE INFORMATION ENVIRONMENT VOTING-RIGHTS AGENCY COSTS INVESTMENT DECISIONS EMERGING ECONOMIES MATURITY STRUCTURE TIME-INVARIANT CASH FLOW FIRM
13
383
405
We analyze the impact of firm-specific stock market liberalization events on the capital structure and debt maturity decisions of firms from emerging market economies. We differentiate between firms based on their ownership structures at the time of liberalization and analyze their post-liberalization behavior regarding corporate financing decisions. Our empirical results show that single-class-share firms (typically with stronger corporate governance and better information environments) respond differently to their dualclass-share counterparts. Liberalization results in lower debt reliance for the former group while the latter lengthen the maturity of their debt portfolios.
10.1111/irfi.12014
Grant Details