Ownership Structure and Cost of Equity Capital: Tunisian evidence
| Autor: | Mejda Dakhlaoui, Gana Marjene |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Organizational Behavior and Human Resource Management
Variables Foreign ownership Strategy and Management media_common.quotation_subject Context (language use) State ownership Microeconomics Cost of capital Negative relationship Economics Endogeneity Business and International Management Panel data media_common |
| Zdroj: | International Journal of Business Governance and Ethics. 14:1 |
| ISSN: | 1741-802X 1477-9048 |
| DOI: | 10.1504/ijbge.2020.10023487 |
| Popis: | This paper aims to examine the effect of ownership structure on the cost of equity capital in the Tunisian context. Using panel data, the study provides evidence for a negative relationship between ownership concentration and cost of equity capital. However, most ownership composition variables validate the entrenchment effect. Results show an inverted U-shaped relationship between institutional ownership, foreign ownership and cost of equity capital. However, a U-shaped relationship is found between state ownership and the dependent variable. To alleviate endogeneity concerns and establish that the results are robust, the authors re-estimated the regressions using a dynamic approach. It supports the entrenchment effect of ownership concentration. A U-shaped relationship between this variable and the cost of equity capital is confirmed. However, a concave relationship is found when considering ownership composition variables. As for family ownership, the results from static and dynamic approaches are convergent and in favour of entrenchment effects. |
| Databáze: | OpenAIRE |
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