scholarly journals Capital structure and corporate governance: the French case

2008 ◽  
Vol 5 (2) ◽  
pp. 427-433
Author(s):  
Esther Jeffers ◽  
Dominique Plihon
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Financial Markets ◽  
World Economy ◽  
Corporate Strategies ◽  
Financial Innovations ◽  
The World ◽  
French Case ◽  
The Impact ◽  
The Capital Structure

The world economy has undergone major changes during the last twenty years. Financial markets have grown spectacularly on the international level. In particular, stock markets rose substantially in the 1990s. At the same time, the combined process of deregulation and financial innovations transformed the internationalization of financial activities into financial globalization, which witnessed a considerable strengthening of both the impact and freedom of action of the main players. France did not remain unaffected by this evolution, much the contrary. This was all the more impressive given the historical weakness of the country’s financial markets. Many studies have been devoted to the growth of financial markets and many others to corporate governance, but the influence of the capital structure and the forms of governance on corporate strategies have rarely been empirically evaluated in the literature, due to the scarcity of relevant data. This paper aims at understanding (I) how the capital structure of French corporations has changed and, through an empirical study, (II) how this change may have impacted their strategy

scholarly journals Determinants of Capital Structure within the Context of Corporate Governance in Egypt

2018 ◽  
Vol 13 (8) ◽  
pp. 26 ◽  
Author(s):  
Hanaa A. El-Habashy
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Emerging Economy ◽  
Managerial Ownership ◽  
Listed Firms ◽  
Western Countries ◽  
Specific Factors ◽  
The Impact ◽  
The Capital Structure

This study aims to investigate the characteristics of corporate governance that impact the capital structure decisions in listed firms in Egypt, to test the efficiency of the research results conducted in the developed Western countries in an emerging economy. A sample of 240 observations from the most active non-financial companies collected in the period 2009-2014 was used for hypothesis testing. Multiple regression models (OLS) were used for data analysis. Seven variables are used in measuring the attributes of corporate governance; they are the managerial ownership, institutional shareholding, shares owned by a large block, board size, board composition, separation of CEO/Chair positions and audit type. Four ratios were calculated for measuring the capital structure, they are long-term and short-term debt to assets, total debt to assets and debt to equity. The results suggest that corporate governance attributes have a significant impact on the capital structure decisions of listed Egyptian companies. In addition, firm-specific factors such as profitability, tangibility, growth opportunities, corporate tax, firm size and non-debt tax shields influence the choice of capital structure in Egypt. The results showed the same relationship with what was obtained in developed Western countries. The paper offers some contribution in the literature and helps to understand the impact of corporate governance on Egypt's capital structure as an emerging economy.

scholarly journals The impact of Covid-19 on international financial markets: winners and losers

2021 ◽  
Vol 7 (1) ◽  
pp. 53-75
Author(s):  
Gema Orihuel Bañuls
Keyword(s):  
Global Health ◽  
Financial Markets ◽  
World Economy ◽  
Stock Exchange ◽  
Economic Recovery ◽  
Specific Information ◽  
2008 Financial Crisis ◽  
The World ◽  
The 2008 Financial Crisis ◽  
The Impact

The pandemic caused by the SARS-Cov-2 (Covid-19) virus has triggered a worldwide impact on the economy that has been firstly reflected in the financial markets‘ performance. As a consequence of this global health emergency, the world economy is going to deal with its greatest threat since the 2008 Financial Crisis. However, the collapse and recovery of countries and industries are likely to be divergent. This paper aims to provide a global picture of different stock exchange indexes’ progress, including SP 500, Eurostoxx 50, IBEX 35 and CSI 300. In addition, components‘ performance of the Eurostoxx 50 have been analyzed in order to gather more specific information regarding the Covid-19 impact in different industries. Results have revealed that recovery in some of the stock markets are due to large corporation’s resilience and some winning sectors. As a result, the economic recovery is taking the form of a "K".

Capital structure and corporate governance of soccer clubs

2014 ◽  
Vol 37 (7) ◽  
pp. 658-678 ◽  
Author(s):  
Panagiotis Dimitropoulos
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Content Type ◽  
Financing Decisions ◽  
Corporate Governance Mechanisms ◽  
Football Clubs ◽  
Future Viability ◽  
Corporate Governance Quality ◽  
The Impact ◽  
The Capital Structure

Purpose – The present study aims to examine the impact of corporate governance quality on the capital structure of European soccer clubs and specifically on the level of debt that soccer clubs decide to issue. Design/methodology/approach – A sample from 67 European soccer clubs over the period of 2005-2009 was analyzed, and panel data techniques were performed to assess the impact of specific corporate governance provisions on the capital structure of football clubs (FCs). Findings – Evidence indicate that efficient corporate governance mechanisms such as the increased board size and independence and the existence of more dispersed ownership (managerial and institutional) result in a reduction in the level of leverage and debt, thus reducing the risk of financial instability. Practical implications – This evidence suggests that corporate governance could be used as a monitoring mechanism for reducing the fictitious level of debt that characterizes the majority of European soccer clubs. This study could prove useful to Union of European Football Associations (UEFA) regulators because it provides an additional insight for the importance of establishing sound governance principles in European soccer so as to enhance the effectiveness of the recent “financial fair play” regulation which was launched in 2010, as well as to improve the financial status of the clubs and sustain their future viability. Originality/value – This is the first study internationally that examines capital structure within FCs, thus extending the existent empirical evidence in the literature and adding to a growing body of research on the issues of corporate governance and financing decisions.

Is the Concept of Corporate Governance a Strategic Plan for Firms’ Optimum Capital Structure? Evidence from Manufacturing Companies

2020 ◽  
Vol 3 (2) ◽  
pp. 113-131
Author(s):  
Chandrika Prasad Das ◽  
Himanshu Agarwall ◽  
Rabindra Kumar Swain
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Audit Committee ◽  
Strategic Plan ◽  
Independent Director ◽  
Manufacturing Companies ◽  
Equity Ratio ◽  
The Impact ◽  
The Relationship ◽  
The Capital Structure

The aim of the article is to examine the relationship as well as measure the impact of corporate governance as a strategic plan on capital structure decision of top Bombay Stock Exchange-listed manufacturing firms in India. Panel regression analysis is employed to estimate the relationship and measure the impact of corporate governance, namely, size, meetings, independent director, women director and audit committee meetings, on the capital structure mix (debt–equity ratio) of the sample corporate, during a 10-year period of 2008–2017. The results of study reveal that the components of corporate governance, namely, size, board meetings, independent director, and audit committee meetings have a positive association with the capital structure variable (debt–equity ratio) of the sample manufacturing companies. However, there is a negative relationship between the control variables (ROCE and NWTA) and the dependent variable of the sample corporate. Overall, as per the study results, a statistically significant impact prevails on the capital structure, of corporate governance variables, taken as a whole. This article adds on to the existing study by highlighting a new prospect of relation and influence of corporate governance on capital structure decisions. The statistical findings of the study provide evidence to the corporate sector in deciding the optimum capital structure, affecting its costs and performance, and to the regulatory authorities in framing and implementing corporate governance mechanisms more effectively and efficiently for improving the economy of the country.

Evaluating the impact of economic factors on REITs' capital structure around the world

2014 ◽  
Vol 32 (1) ◽  
pp. 5-20 ◽  
Author(s):  
Antonios Rovolis ◽  
Andreas Feidakis
Keyword(s):  
Panel Data ◽  
Real Estate ◽  
Capital Structure ◽  
Interest Rates ◽  
Financial Management ◽  
Dynamic Panel Data ◽  
Content Type ◽  
The World ◽  
The Impact ◽  
The Capital Structure

Purpose – This paper aims to examine the determinants of the capital structure of real estate investment trusts (REITs) across the world and explore whether this structure is characterized by any common factors. Design/methodology/approach – Endogenous and exogenous factors that affect the financial management of real estate firms are identified in the analysis. “Regular” (static) panel data regression analysis, as well as dynamic panel data techniques, is applied to a panel of listed real estate firms from 2005 to 2010. Findings – Empirical results showed that factors such as tangibility, size of the company, growth opportunities, assets turnover affect positively the financial leverage of REITs; conversely, other determinants, being debit's cost, GDP, and long-term interest rates, are negatively correlated with the financial gearing of the REITs. Practical implications – This paper identifies factors that determine the capital structure of REITs around the world. Firm executives and policy makers in different countries may wish to adjust their policies (regarding capital structure) according to the empirical findings. Originality/value – This study, using a comprehensive dataset from all over the world, investigates whether there are solid and mutual factors that can characterize the capital structure of REITs.

scholarly journals The Impact of Corporate Governance on the Capital Structure of Companies from the Energy Industry. The Case of Poland

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 7412
Author(s):  
Barbara Grabinska ◽  
Marcin Kedzior ◽  
Dorota Kedzior ◽  
Konrad Grabinski
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Climate Policy ◽  
Personal Characteristics ◽  
Energy Sector ◽  
State Ownership ◽  
Green Energy ◽  
Energy Industry ◽  
The Impact ◽  
The Capital Structure

The energy sector is expected to face fundamental challenges in the near future. On the one hand, it is experiencing a rapidly increasing demand for energy. At the same time, it is subject to the pressure of the climate policy due to environmental issues. For the same reason, the energy sector is forced to undertake costly investments to transform production from black to green energy. The issue of financing has become one of the key problems of the energy sector, especially in those countries in which energy production traditionally is based on fossil fuels, i.e., coal. The paper aims to investigate the impact of corporate governance on the capital structure of companies from the energy industry. We use three proxies of corporate governance quality: institutional investors, the board size, and state ownership and investigate their impact on capital structure. Our findings suggest that the latter two negatively impact debt levels. In our model, we control for financial factors and CEO personal characteristics. We use a Polish setting since transformational problems of the energy sector in Poland are especially visible. At the same time, energy companies in Poland are subject to the strict EU climate policy.

scholarly journals Coronavirus: impact on the economy and financial markets

2020 ◽  
Vol 13 (2) ◽  
pp. 111-118 ◽  
Author(s):  
E. A. Barinov
Keyword(s):  
Financial Markets ◽  
Exchange Rates ◽  
World Economy ◽  
Energy Carrier ◽  
Western Countries ◽  
The World ◽  
Coronavirus Infection ◽  
The Impact

The article examines the impact of the pandemic on the world economy. The impact of the OPEC+ oil agreement and the reduction of its production on financial markets and exchange rates is noted. Data are provided on the losses of a number of countries from the decline in prices for this energy carrier and the increase in the incidence of coronavirus infection in the population. The article analyzes the measures taken by Western countries and Russia to help national companies and populations affected by the pandemic.

scholarly journals The Impact of Corporate Strategy on the Capital Structure of Pakistani Companies (Diversification and Capital Structure)

2020 ◽  
Vol 2 (1) ◽  
pp. p27
Author(s):  
Muhammad Uzair Ali ◽  
Gong Zhimin ◽  
Muhammad Rizwanullah ◽  
Xiong Wu ◽  
Itbar Khan
Keyword(s):  
Capital Structure ◽  
Financial Management ◽  
Corporate Strategy ◽  
Stock Exchange ◽  
Firm Strategy ◽  
Dominant Strategy ◽  
Financing Decisions ◽  
Corporate Strategies ◽  
The Impact ◽  
The Capital Structure

Research into the capital structure of firms has been the subject of extensive empirical investigation. This study seeks to extend the debate by examining the endogenous influence of corporate strategy on financing decisions made by firms. Diversification is one of the corporate strategies that allow a company to enter business lines that are same or different from current operations as well as operate in several economic markets. Financial choices need to be evaluated because of their close interaction with management choices. Optimal capital structure plays a key role in achieving the overriding goal of financial management. The study sought to discover the impact of corporate diversification strategies on financial choices because study main focus is diversification strategy (A type of corporate strategy). For purposes of comparison, the current study used four of the nine Rumelt categories which correspond to Wrigley's original four, which were single product strategy, dominant strategy, related firm strategy and unrelated firm strategy. Panel data model was constructed and using a sample of 120 companies listed on the Pakistan Stock Exchange and data was obtained for companies with seven years’ quarterly data annually from 2010 to 2017. Using empirical tests, we found no relationship between diversification and leverage. Our analysis suggests that Diversifications strategy impact on capital structure indicate that this focus of enquiry has considerable potential for further resolution of the capital structure puzzle.

scholarly journals Board monitoring and capital structure dynamics: evidence from bank-based economies

2021 ◽  
Author(s):  
Ernest Ezeani ◽  
Rami Salem ◽  
Frank Kwabi ◽  
Khalid Boutaine ◽  
Bilal ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Speed Of Adjustment ◽  
Board Characteristics ◽  
Structure Dynamics ◽  
Governance Environment ◽  
Board Monitoring ◽  
The Impact ◽  
Oriented System ◽  
The Capital Structure

AbstractWe examine the impact of board characteristics on the speed of adjustment and the capital structure dynamics of firms in bank-based economies. Using 3927 firm-year observations over a 10-year (2009–2019), we find that board characteristic influences firms' speed of adjustment in a bank-based (stakeholder-oriented) system. We also find some evidence that board characteristics have varying impacts on the capital structure of Japanese, French and German firms. We conclude that firms' capital structure reflects the corporate governance environment they operate. Our results are robust to accounting for endogeneity and alternative leverage measure.

The world and Russia: Inflation is minimal, economic growth is slowing, risks are rising

2019 ◽  
pp. 5-23 ◽  
Author(s):  
Mikhail V. Ershov ◽  
Anna S. Tanasova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
World Economy ◽  
Domestic Demand ◽  
New Combination ◽  
Russian Economy ◽  
The World ◽  
World Economic ◽  
Money Creation ◽  
Main Factors

Russian economy has reached the low level of inflation, but economic growth has not accelerated. Moreover, according to official forecasts, in the following years it will still be low. The article concludes that domestic demand, which is one of the main factors of growth, is significantly constrained by monetary, budgetary and fiscal spheres. The situation in the Russian economy is still hampered by the decline of the world economic growth. The prospects of financial markets are highly uncertain. This increases the possibility of crisis in the world. Leading countries widely use non-traditional measures to support their economies in the similar environment. In the world economy as well as in Russia a principally new combination of factors has emerged, which create specific features of economic growth. It requires special set of measures to stimulate such growth. The article proves that Russian regulators have large unused potential to stimulate growth. It includes monetization, long-money creation, budget and tax stimuli. It is important that the instruments, which will be used, should be based on domestic mechanisms. This will strengthen financial basis of the economy and may encourage economic growth. Some specific suggestions as to their use are made.

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