Advances in Economics, Management and Political Sciences

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Proceedings of the 2023 International Conference on Management Research and Economic Development

Series Vol. 19 , 13 September 2023


Open Access | Article

A Review of the Influence of Ownership Structure on Capital Structure

Sichuang Xu * 1 , Chuyun Wang 2 , Guozheng Men 3 , Sitong Diao 4
1 University of Manchester
2 Kings College London
3 Jinan Foreign Language School
4 Shen Wai International School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 19, 93-99
Published 13 September 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Sichuang Xu, Chuyun Wang, Guozheng Men, Sitong Diao. A Review of the Influence of Ownership Structure on Capital Structure. AEMPS (2023) Vol. 19: 93-99. DOI: 10.54254/2754-1169/19/20230123.

Abstract

The main content of this paper is the analysis of the influence of ownership structure on capital structure and the summary of some scholars in the past on this aspect of research. This article added some private perspectives and came to the conclusion. Bebchuk, Du and Dai, Nor and Ariffin, Boubaker, Driffield, Friedman, Bany, Boubakri and Montreal have provided significant academic support for this paper, using a variety of regression models and structures to conduct data sampling in different regions and come to quite authoritative conclusions. This article also presents basic information about the subject, such as the purpose of changing the ownership structure and how it works, and an explanation of some of the professional names mentioned in this article.

Keywords

capital structure, ownership structure, CMS, tradeoff

References

1. Attig, Najah, et al. “Bid-Ask Spread, Asymmetric Information and Ultimate Ownership.” SSRN Electronic Journal, 2002, 10.2139/ssrn.332020. Accessed 10 May 2020.

2. Bany-Ariffin, A.N., et al. “Pyramidal Structure, Firm Capital Structure Exploitation and Ultimate Owners’ Dominance.” International Review of Financial Analysis, vol. 19, no. 3, June 2010, pp. 151–164, 10.1016/j.irfa.2010.03.002. Accessed 6 Aug. 2020.

3. Bebchuk, Lucian, et al. “Stock Pyramids, Cross-Ownership, and the Dual Class Equity: The Creation and Agency Costs of Seperating Control from Cash Flow Rights.” National Bureau of Economic Research, 1 Feb. 1999, www.nber.org/papers/w6951. Accessed 1 Oct. 2022.

4. Boubaker, Sabri. “ON the RELATIONSHIP between OWNERSHIP-CONTROL STRUCTURE and DEBT FINANCING: NEW EVIDENCE from FRANCE.” Corporate Ownership and Control, vol. 5, no. 1, 2007, 10.22495/cocv5i1p12. Accessed 9 Sept. 2019.

5. Driffield, Nigel, et al. “How Does Ownership Structure Affect Capital Structure and Firm Value? Recent Evidence from East Asia.” The Economics of Transition, vol. 15, no. 3, July 2007, pp. 535–573, 10.1111/j.1468-0351.2007. 00291.x. Accessed 1 Sept. 2021.

6. Du, Julan, and Yi Dai. “Ultimate Corporate Ownership Structures and Capital Structures: Evidence from East Asian Economies.” Corporate Governance, vol. 13, no. 1, Jan. 2005, pp. 60–71, 10.1111/j.1467-8683.2005. 00403.x. Accessed 9 Sept. 2019.

7. Faccio, Mara, et al. “Dividends and Expropriation.” American Economic Review, vol. 91, no. 1, Mar. 2001, pp. 54–78, www.aeaweb.org/articles?id=10.1257/aer.91.1.54, 10.1257/aer.91.1.54.

8. Friedman, Eric, et al. NBER WORKING PAPER SERIES PROPPING and TUNNELING. 2003.

9. Ghouma, Hatem, and Narjess Boubakri. “Ultimate Ownership, Creditor Rights Protection and the Debt Financing Costs and Ratings: International Evidence.” SSRN Electronic Journal, 2007, 10.2139/ssrn.1025992. Accessed 15 Oct. 2019.

10. Jensen, Michael C., and William H. Meckling. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” Journal of Financial Economics, vol. 3, no. 4, Oct. 1976, pp. 305–360, www.sciencedirect.com/science/article/pii/0304405X7690026X.

11. Mat Nor, Fauzias, and Bany Ariffin. “DOES PYRAMIDING HAVE an IMPACT on FIRM’S CAPITAL STRUCTURE DECISION among MALAYSIAN DISTRESS COMPANIES?” Corporate Ownership and Control, vol. 2, no. 4, 2005, 10.22495/cocv2i4p9. Accessed 13 Aug. 2019.

12. MOERLAND, PIETER W. “Corporate Ownership and Control Structures: An International Comparison.” Review of Industrial Organization, vol. 10, no. 4, 1995, pp. 443–464, www.jstor.org/stable/41798591. Accessed 2 Oct. 2022.

13. “What Is a Management Pyramid? (And Other Types of Management Structures).” Indeed Career Guide, 9 May 2022, www.indeed.com/career-advice/career-development/management-pyramid.w

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2023 International Conference on Management Research and Economic Development
ISBN (Print)
978-1-915371-81-2
ISBN (Online)
978-1-915371-82-9
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/19/20230123
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated