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The effects of ownership structure on corporate financing decisions: Evidence from stock market liberalization

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  • Thomas Flavin

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

  • Thomas O'Connor

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

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. 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 dual-class-share counterparts. Liberalization results in lower debt reliance for the former group while the latter lengthen the maturity of their debt portfolios.

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Bibliographic Info

Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n235-13.pdf.

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Length: 29 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:may:mayecw:n235-13.pdf

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Keywords: Financing choices; Debt maturity; Investability;

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