Group Finance Companies and Dynamic Adjustment of Capital Structure of Related Listed Companies

Autor: Huan Dou, Sheng Fan, Shangkun Liang
Jazyk: angličtina
Rok vydání: 2023
Předmět:
Zdroj: China Journal of Accounting Studies, Vol 11, Iss 2, Pp 399-422 (2023)
Druh dokumentu: article
ISSN: 21697213
2169-7221
2169-7213
DOI: 10.1080/21697213.2023.2239671
Popis: ABSTRACTUsing the data of all A-share listed companies from 2009 to 2018, we find that the group finance companies inhibit the dynamic adjustment speed of capital structure to their optimal level of the related listed companies. The reason is that the controlling shareholders may occupy the related deposits of listed companies in the finance companies. We find that the inhibition effect is more significant when the controlling shareholders’ shareholding ratio is low and the related party transactions are high, and is weakened after the implementation of the deleveraging policy. Moreover, the inhibition effect is significant in both the upward and downward adjustment processes. In addition, the finance companies make the deviation of capital structure of listed companies larger, and this effect is mainly reflected in upward deviation. We also find that the functions of finance companies will affect the dynamic adjustment of capital structure of listed companies.
Databáze: Directory of Open Access Journals
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