The Effects of Ownership Structure and Governance on Corporate Financing Decisions

24 Pages Posted: 16 Jan 2012

See all articles by Thomas O’Connor

Thomas O’Connor

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting

Thomas Flavin

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting

Date Written: January 15, 2012

Abstract

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. In particular, we focus on the potentially different responses of firms with different ownership structures and associated governance regimes at the time of liberalization. Our empirical results show that single-class-share (typically with stronger corporate governance) firms respond differently to their dual-class-share counterparts. Liberalization results in lower debt reliance for the former group while the latter lengthen the maturity of their debt portfolios.

Keywords: Financing choices, Debt maturity, Investability

JEL Classification: F30, G15, G32

Suggested Citation

O'Connor, Thomas and Flavin, Thomas J, The Effects of Ownership Structure and Governance on Corporate Financing Decisions (January 15, 2012). Available at SSRN: https://ssrn.com/abstract=1985536 or http://dx.doi.org/10.2139/ssrn.1985536

Thomas O'Connor (Contact Author)

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting ( email )

County Kildare
Ireland

Thomas J Flavin

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting ( email )

County Kildare
Ireland
+353 1 708 3369 (Phone)
+353 1 708 3934 (Fax)

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