Corporate ownership and capital structure: evidence from Romania
| Autor: | Alina ȚARAN |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2019 |
| Předmět: | |
| Zdroj: | Eastern Journal of European Studies, Vol 10, Iss 1, Pp 133-150 (2019) |
| Druh dokumentu: | article |
| ISSN: | 2068-651X 2068-6633 |
| Popis: | This study explores the relation between local and foreign corporate ownership and capital structure of Romanian listed companies (as proxied by debt ratio, short-term debt ratio, and long-term debt ratio in total assets). Our empirical analysis indicates that corporations, as shareholders of public companies, determine a reduction in the overall need of external debts of the investee firms. However, foreign corporate shareholders promote a short-term indebtedness policy of non-financial companies listed on the regulated segment of Bucharest Stock Exchange. In contrast, local corporate shareholders have a negative influence on the short-term debt of their affiliates. Our findings provide a better understanding of financing decisions of domestic entities, and consequently, may contribute to efficient investing and management decisions of business actors in Romania, and other European frontier markets. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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