Nonlinear association between ownership concentration and leverage: The role of family control

The 2008-2009 global financial crisis and the European debt crisis have raised further questions on leverage decision making. In this regard, this study examines the association between concentration of controlling rights and leverage in the presence of families. This study also assesses the role pl...

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Main Authors: Lo H.-C., Ting I.W.K., Kweh Q.L., Yang M.J.
Other Authors: 56091901800
Format: Article
Published: Elsevier Inc. 2023
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Institution: Universiti Tenaga Nasional
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spelling my.uniten.dspace-226992023-05-29T14:11:43Z Nonlinear association between ownership concentration and leverage: The role of family control Lo H.-C. Ting I.W.K. Kweh Q.L. Yang M.J. 56091901800 57211409300 55661469500 56171896800 The 2008-2009 global financial crisis and the European debt crisis have raised further questions on leverage decision making. In this regard, this study examines the association between concentration of controlling rights and leverage in the presence of families. This study also assesses the role played by families in moderating the nonlinear reversed U-shaped association between concentration of controlling rights and debt ratio. Publicly listed companies in Taiwan, which is a nation characterized by weak protection for minority shareholders, are studied for the period of 1999 to 2014. The effect of the nonlinear inverted U shape is confirmed, and the weakened effect of the existence of family control is presented. The results remain unchanged in several alternative tests, including addressing the endogeneity issue of ownership-decision studies. Overall, this study highlights the ownership-debt relationship in a nation with weak protection of minority shareholders. � 2016 Elsevier Inc. Final 2023-05-29T06:11:43Z 2023-05-29T06:11:43Z 2016 Article 10.1016/j.irfa.2016.04.013 2-s2.0-84966349678 https://www.scopus.com/inward/record.uri?eid=2-s2.0-84966349678&doi=10.1016%2fj.irfa.2016.04.013&partnerID=40&md5=975c260447d6cd597ffe72a6ecba1df4 https://irepository.uniten.edu.my/handle/123456789/22699 46 113 123 Elsevier Inc. Scopus
institution Universiti Tenaga Nasional
building UNITEN Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tenaga Nasional
content_source UNITEN Institutional Repository
url_provider http://dspace.uniten.edu.my/
description The 2008-2009 global financial crisis and the European debt crisis have raised further questions on leverage decision making. In this regard, this study examines the association between concentration of controlling rights and leverage in the presence of families. This study also assesses the role played by families in moderating the nonlinear reversed U-shaped association between concentration of controlling rights and debt ratio. Publicly listed companies in Taiwan, which is a nation characterized by weak protection for minority shareholders, are studied for the period of 1999 to 2014. The effect of the nonlinear inverted U shape is confirmed, and the weakened effect of the existence of family control is presented. The results remain unchanged in several alternative tests, including addressing the endogeneity issue of ownership-decision studies. Overall, this study highlights the ownership-debt relationship in a nation with weak protection of minority shareholders. � 2016 Elsevier Inc.
author2 56091901800
author_facet 56091901800
Lo H.-C.
Ting I.W.K.
Kweh Q.L.
Yang M.J.
format Article
author Lo H.-C.
Ting I.W.K.
Kweh Q.L.
Yang M.J.
spellingShingle Lo H.-C.
Ting I.W.K.
Kweh Q.L.
Yang M.J.
Nonlinear association between ownership concentration and leverage: The role of family control
author_sort Lo H.-C.
title Nonlinear association between ownership concentration and leverage: The role of family control
title_short Nonlinear association between ownership concentration and leverage: The role of family control
title_full Nonlinear association between ownership concentration and leverage: The role of family control
title_fullStr Nonlinear association between ownership concentration and leverage: The role of family control
title_full_unstemmed Nonlinear association between ownership concentration and leverage: The role of family control
title_sort nonlinear association between ownership concentration and leverage: the role of family control
publisher Elsevier Inc.
publishDate 2023
_version_ 1806426297661915136