IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Impact of ownership structure on leverage of non-financial firms in developing countries

Listed author(s):
  • Karartı, Tuncay
Registered author(s):

    The effects of the ownership structure on the performance of a firm has been widely discussed in the past literature; however, the relationship between ownership structure and capital structure is not much examined. Those that discuss this issue are mostly conducted in developed countries due to the availability of the business sector data. The aim of this study is to focus on whether the ownership structure can help in explaining the variation of capital structure in developing countries, the case of Turkey. In this study, with a comprehensive literature review, the empirical evidence is used through theoretical framework. The analysis of the study is divided into three parts. First, the negative relationship between managerial ownership and capital structure. Second, the impact of ownership concentration (large shareholding) on debt/equity ratio. Last, the impact of both managerial ownership and external block holders on leverage.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: https://mpra.ub.uni-muenchen.de/61483/1/MPRA_paper_61483.pdf
    File Function: original version
    Download Restriction: no

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 61483.

    as
    in new window

    Length:
    Date of creation: Jan 2014
    Publication status: Published in International Research Journal of York University 1.1(2014): pp. 16-46
    Handle: RePEc:pra:mprapa:61483
    Contact details of provider: Postal:
    Ludwigstraße 33, D-80539 Munich, Germany

    Phone: +49-(0)89-2180-2459
    Fax: +49-(0)89-2180-992459
    Web page: https://mpra.ub.uni-muenchen.de

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Joshua Abor, 2005. "The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana," Journal of Risk Finance, Emerald Group Publishing, vol. 6(5), pages 438-445, November.
    2. Nikolaos Eriotis, 2007. "How firm characteristics affect capital structure: an empirical study," Managerial Finance, Emerald Group Publishing, vol. 33(5), pages 321-331, April.
    3. Jonchi Shyu, 2013. "Ownership structure, capital structure, and performance of group affiliation: Evidence from Taiwanese group-affiliated firms," Managerial Finance, Emerald Group Publishing, vol. 39(4), pages 404-420, March.
    4. Kate Jelinek, 2009. "The nonlinear relation between agency costs and managerial equity ownership: Evidence of decreasing benefits of increasing ownership," International Journal of Managerial Finance, Emerald Group Publishing, vol. 5(2), pages 156-178, April.
    5. Julio Pindado, 2008. "Financial decisions as determinants of ownership structure: Evidence from Spanish family controlled firms," Managerial Finance, Emerald Group Publishing, vol. 34(12), pages 868-885, October.
    6. Kuntara Pukthuanthong & Thomas J. Walker & Dolruedee Nuttanontra Thiengtham & Heng Du, 2013. "Does family ownership create or destroy value? Evidence from Canada," International Journal of Managerial Finance, Emerald Group Publishing, vol. 9(1), pages 13-48, February.
    7. Joshua Abor, 2008. "Agency theoretic determinants of debt levels: evidence from Ghana," Review of Accounting and Finance, Emerald Group Publishing, vol. 7(2), pages 183-192, May.
    8. Chrisostomos Florackis, 2008. "Agency costs and corporate governance mechanisms: evidence for UK firms," International Journal of Managerial Finance, Emerald Group Publishing, vol. 4(1), pages 37-59, January.
    9. Anthony Kyereboah-Coleman, 2007. "The impact of capital structure on the performance of microfinance institutions," Journal of Risk Finance, Emerald Group Publishing, vol. 8(1), pages 56-71, January.
    10. Lee Shin-Ping, 2009. "The determinants of corporate performance: A viewpoint from insider ownership and institutional ownership," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(3), pages 233-247, March.
    11. Yu Honghai, 2011. "Ultimate ownership, institutions and listed companies' debt financing: Based on the perspective of controlling shareholders," China Finance Review International, Emerald Group Publishing, vol. 1(4), pages 316-333, September.
    12. Basil Al-Najjar, 2011. "Revisiting the capital-structure puzzle: UK evidence," Journal of Risk Finance, Emerald Group Publishing, vol. 12(4), pages 329-338, August.
    13. Basil Al-Najjar, 2008. "The relationship between capital structure and ownership structure: New evidence from Jordanian panel data," Managerial Finance, Emerald Group Publishing, vol. 34(12), pages 919-933, October.
    14. Mazlina Mustapha, 2011. "Agency theory and managerial ownership: evidence from Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(5), pages 419-436, May.
    15. Joshua Abor, 2007. "Debt policy and performance of SMEs: Evidence from Ghanaian and South African firms," Journal of Risk Finance, Emerald Group Publishing, vol. 8(4), pages 364-379, August.
    16. Agyenim Boateng, 2004. "Determinants of capital structure: Evidence from international joint ventures in Ghana," International Journal of Social Economics, Emerald Group Publishing, vol. 31(1/2), pages 56-66, January.
    17. K. Michael Casey & Glenna Sumner & James Packer, 2006. "REIT capital structure: is it market imposed?," Managerial Finance, Emerald Group Publishing, vol. 32(12), pages 981-987.
    18. Omneya Abdelsalam, 2008. "Board composition, ownership structure and dividend policies in an emerging market: Further evidence from CASE 50," Managerial Finance, Emerald Group Publishing, vol. 34(12), pages 953-964, October.
    19. Mine Ugurlu, 2000. "Agency costs and corporate control devices in the Turkish manufacturing industry," Journal of Economic Studies, Emerald Group Publishing, vol. 27(6), pages 566-599, October.
    20. Khaled Hussainey, 2012. "Corporate governance mechanisms and capital structure in UAE," Journal of Applied Accounting Research, Emerald Group Publishing, vol. 13(2), pages 145-160, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:61483. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.