This paper investigates the relationship between capital structure, ownership structure and firm performance using a sample of French manufacturing firms. We employ non-parametric data envelopment analysis (DEA) methods to empirically construct the industry’s ‘best practice’ frontier and measure firm efficiency as the distance from that frontier. Using these performance measures we examine if more efficient firms choose more or less debt in their capital structure. We summarize the contrasting effects of efficiency on capital structure in terms of two competing hypotheses: the efficiency-risk and franchise-value hypotheses. Using quantile regressions we test the effect of efficiency on leverage and thus the empirical validity of the two competing hypotheses across different capital structure choices. We also test the direct relationship from leverage to efficiency stipulated by the Jensen and Meckling (1976) agency cost model. Throughout this analysis we consider the role of ownership structure and type on capital structure and firm performance.

/pdf/capital-structure-equity-ownership-and-firm-performance-qxsofzfxem.pdf

Capital structure, equity ownership and firm performance

This paper examines the impact of ownership structures of emerging-market firms, which are shaped by local institutions, on the decision of these firms to undertake outward FDI. Our results suggest that family firms and firms with concentrated ownerships (both ubiquitous in emerging markets) are less likely to invest overseas, and that strategic equity holding by foreign investors facilitates outward FDI. We conclude that organisational forms such as family firms, which are optimal outcomes of institutions prevailing in emerging markets, may be suboptimal in a changing business environment in which outward FDI is necessary for access to resources and markets.

/pdf/does-ownership-structure-of-emerging-market-firms-affect-12qwc21xy8.pdf

Does ownership structure of emerging-market firms affect their outward FDI? The case of the Indian automotive and pharmaceutical sectors

When does leverage hurt productivity growth? A firm-level analysis

Our finding contributes towards the understanding of movements regarding the adoption of corporate governance practice in emerging countries such as Romania and its impact on business performances of a company.We have developed two econometric models to assess the business performances of the companies listed on Bucharest Stock Exchange, in order to point out the impact of corporate governance on business performances. Our results are inconsistent for the period 2001–2011, but if we consider only 2011, the results document a positive correlation between corporate governance quality and market value of companies, such it is reflected by Tobin’s Q. Therefore, our results contribute to the studies relating corporate governance and business performances, as it confirms a positive relationship between the two variables which appears once the Romanian emerging economy has began to adopt the best corporate governance practices.Firstly, our research has important implications for managers in order to know...

/pdf/corporate-governance-and-business-performance-evidence-for-48yv72uh76.pdf

Corporate governance and business performance: evidence for the Romanian economy

This study investigates the relationship between ownership structure and corporate performance of 50 companies, listed in manufacturing industry on the Istanbul Stock Exchange during the 2005-2008 period. The study uses the share of the largest shareholder as ownership structure variables, tobin’s q and profit before tax divided by total asset as performance variables, and leverage and firm size (total asset) as control variables. For variables, first panel unit root and Hausman tests were made and then panel data analysis were applied. Accoarding to the result of analysis, while TLS were observed to have possitive effect on PBT, no effects were observed on TOB.

/pdf/the-relationship-between-ownership-structure-and-firm-1a6s3pt20p.pdf

The Relationship between Ownership Structure and Firm Performance: An Empirical Analysis over İstanbul Stock Exchange (ISE) Listed Companies

The present paper empirically examines the effects of ownership structure on capital structure and firm valuation in four East Asian countries worst affected by the last Crisis. In doing so, we distinguish ownership from both control and management and also allow for the simultaneity between capital structure and firm valuation in the sample countries. Results obtained from 3SLS estimates with error components confirm and extend the findings of Claessens et al. (2002) and particularly highlight the contrasting behaviour of family firms and non-family firms with/without a Cronyman.

/pdf/how-does-ownership-structure-affect-capital-structure-and-41bgcr12o1.pdf

How does ownership structure affect capital structure and firm performance? Recent evidence from east Asia

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How does ownership structure affect capital structure and firm performance? Recent evidence from east Asia