Artikel

Government ownership and the capital structure of firms: Analysis of an institutional context from China

Emerging economies provide interesting scenarios for examining how institutional context influences the financing behavior of firms. In this study, we examine the capital structure of Chinese listed firms following the Split-Share Structure Reform of 2005. This reform allowed a reduction of government ownership by making government shares tradable. We find that the impact of government ownership on leverage is dependent on whether the government is the largest shareholder in a firm and whether the government ownership is through a parent state-owned enterprise. In addition, we document that the largest non-government shareholder positively influences leverage. Overall, our results reveal that the largest controlling shareholder, either government or non-government, has a significant impact on the capital structure of Chinese firms.

Language
Englisch

Bibliographic citation
Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 11 ; Year: 2018 ; Issue: 3 ; Pages: 171-185 ; Amsterdam: Elsevier

Classification
Management
Subject
Capital structure
Leverage
Ownership
Government ownership
China

Event
Geistige Schöpfung
(who)
Huang, Xiaohong
Kabir, Rezaul
Zhang, Lingling
Event
Veröffentlichung
(who)
Elsevier
(where)
Amsterdam
(when)
2018

DOI
doi:10.1016/j.cjar.2018.07.001
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Huang, Xiaohong
  • Kabir, Rezaul
  • Zhang, Lingling
  • Elsevier

Time of origin

  • 2018

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