Ownership, institutions, and capital structure: Evidence from China
Kai Li,Heng Yue,Longkai Zhao +2 more
TLDR
Li et al. as discussed by the authors explored the role of ownership structure and institutional development in debt financing of non-publicly traded Chinese firms and found that state ownership is positively associated with leverage and firms' access to long-term debt, while foreign ownership is negatively associated with all measures of leverage.About:
This article is published in Journal of Comparative Economics.The article was published on 2009-09-01 and is currently open access. It has received 252 citations till now. The article focuses on the topics: State ownership & Foreign ownership.read more
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Corporate governance in China: A modern perspective
Fuxiu Jiang,Kenneth A. Kim +1 more
TL;DR: The authors provides a modern overview of corporate governance in China and highlights many corporate governance features and issues that are, for the most part, unique to China, and describes how papers in this special issue advance our understanding of Corporate Governance in China.
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Privatization and Risk Sharing: Evidence from the Split Share Structure Reform in China
TL;DR: In this article, the authors investigated the role of risk sharing in the share issue privatization process in China and found that the size of a share is positively associated with both the gain in risk sharing and the price impact of more shares coming on the market.
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Controlling shareholder, expropriations and firm's leverage decision: Evidence from Chinese Non-tradable share reform
Qigui Liu,Gary Gang Tian +1 more
TL;DR: This paper examined the effect of excess control rights on the leverage decisions made by Chinese non-SOEs before and after the non-tradable share reform (NTS) and found that firms with control rights have more excess leverage and their controlling shareholders use the resources for tunneling rather than investing in positive NPV projects.
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China's Financial System: Opportunities and Challenges
TL;DR: Wang et al. as discussed by the authors provide a comprehensive review of China's financial system, and explore directions of future development, including the role of the stock market in allocating resources in the economy.
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Does political capital create value in the IPO market? Evidence from China
TL;DR: Li et al. as discussed by the authors examined the value of political capital in the Chinese IPO market and found a positive relationship between a politically connected executive and the probability of IPO approval of entrepreneurial firms.
References
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Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
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Corporate financing and investment decisions when firms have information that investors do not have
TL;DR: In this paper, a firm that must issue common stock to raise cash to undertake a valuable investment opportunity is considered, and an equilibrium model of the issue-invest decision is developed under these assumptions.
Journal ArticleDOI
Legal Determinants of External Finance
TL;DR: The authors showed that countries with poorer investor protections, measured by both the character of legal rules and the quality of law enforcement, have smaller and narrower capital markets than those with stronger investor protections.
Journal ArticleDOI
The Determinants of Capital Structure Choice
TL;DR: In this paper, the explanatory power of some of the recent theories of optimal capital structure is analyzed empirically and a factor-analytic technique is used to mitigate the measurement problems encountered when working with proxy variables.
Posted Content
Financial Dependence and Growth
Raghuram G. Rajan,Luigi Zingales +1 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship: that financial development reduces the costs of external finance to firms, and they found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
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