The Effects of Ownership Structure on Corporate Financing Decisions: Evidence from Stock Market Liberalization


Thomas O'Connor

Department of Economics, Finance, and Accounting

NUI Maynooth

Maynooth, Co. Kildare

Maynooth 0001



We analyze the impact of firm-specific stock market liberalization events on the capital structure and debt maturity decisions of firms from emerging market economies. We differentiate between firms based on their ownership structures at the time of liberalization and analyze their post-liberalization behavior regarding corporate financing decisions. Our empirical results show that single–class-share firms (typically with stronger corporate governance and better information environments) respond differently to their dual–class-share counterparts. Liberalization results in lower debt reliance for the former group while the latter lengthen the maturity of their debt portfolios.

Jel Classification: F30; G15; G32.