The Effects of Ownership Structure on Corporate Financing Decisions: Evidence from Stock Market Liberalization
Article first published online: 3 JUL 2013
© 2013 International Review of Finance Ltd. 2013
International Review of Finance
Volume 13, Issue 3, pages 383–405, September 2013
How to Cite
O'Connor, T. and Flavin, T. (2013), The Effects of Ownership Structure on Corporate Financing Decisions: Evidence from Stock Market Liberalization. International Review of Finance, 13: 383–405. doi: 10.1111/irfi.12014
- Issue published online: 1 SEP 2013
- Article first published online: 3 JUL 2013
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.