IDEAS home Printed from https://ideas.repec.org/a/ids/ajaafi/v3y2014i2p149-169.html
   My bibliography  Save this article

Governance and bank's capital structure: empirical evidence from a cross countries analysis

Author

Listed:
  • Adeoye Amuda Afolabi

Abstract

This paper examines the role of bank ownership structure on capital structure by [using the financial and ownership data from Caprio et al. (2007) that covered 244 banks across 44 countries]. We classified banks across the countries with geographical regional dummies indicating if the banks are located in Asia, Africa and Latin America (the reference category being OECD countries). We find that family-owner managed firms tend to have a lower debt. In addition, excessive control right of the controlling owner may significantly increase bank leverage. We suggest that in a family-owner managed firms there should be more dilution of ownership so that minority are not exploited as too much loan may lower bank value. Thus, banks need to be better regulated as excessive leverage has been identified as one of the reasons for the current financial crisis.

Suggested Citation

  • Adeoye Amuda Afolabi, 2014. "Governance and bank's capital structure: empirical evidence from a cross countries analysis," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 3(2), pages 149-169.
    • Handle: RePEc:ids:ajaafi:v:3:y:2014:i:2:p:149-169
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=66135
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ajaafi:v:3:y:2014:i:2:p:149-169. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=383 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.