Foreign institutional ownership and the speed of leverage adjustment: International evidence

被引：22

作者：

An, Zhe ^{[1
]}

Chen, Chen ^{[1
]}

Li, Donghui ^{[2
]}

Yin, Chao ^{[3
]}

机构：

[1] Monash Univ, Monash Business Sch, Melbourne, Vic, Australia

[2] Shenzhen Univ, Coll Econ, Shenzhen 518060, Guangdong, Peoples R China

[3] Univ Durham, Business Sch, Durham, England

来源：

JOURNAL OF CORPORATE FINANCE | 2021年 / 68卷

基金：

中国国家自然科学基金;

关键词：

Speed of leverage adjustment; Foreign institutional ownership; CAPITAL STRUCTURE DECISIONS; CORPORATE GOVERNANCE; AGENCY COSTS; INVESTORS; EQUITY; FIRM; SHAREHOLDERS; INFORMATION; DYNAMICS; FINANCE;

D O I：

10.1016/j.jcorpfin.2021.101966

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Employing a large sample of 7246 firms across 38 economies from 2000 to 2013, we show a positive relation between foreign institutional ownership (FIO) and firms' speed of leverage adjustment. This positive relation is concentrated for over-leveraged firms that need to decrease financial leverage to rebalance their capital structures. We validate our findings using a 2SLS regression and a DiD estimation to exploit the exogenous variations in FIO generated by the inclusion of MSCI membership and the passage of the JGTRRA. These results suggest that foreign institutional investors play an important monitoring role in mitigating agency conflicts between shareholders and managers. Overall, this paper lends support to the dynamic trade-off theory.

引用

页数：21

共 50 条

[1] Foreign and local institutional ownership and the speed of price adjustment
Park, Young K.
Chung, Kee H.
[J]. JOURNAL OF BUSINESS FINANCE & ACCOUNTING, 2007, 34 (9-10) : 1569 - 1595
[2] State ownership and adjustment speed toward target leverage: Evidence from a transitional economy
Thao Nguyen
Min Bai
Hou, Greg
Manh-Chien Vu
[J]. RESEARCH IN INTERNATIONAL BUSINESS AND FINANCE, 2020, 53
[3] Foreign institutional ownership and corporate risk-taking: International evidence
Huang, Garland
An, Zhe
Li, Donghui
[J]. CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW, 2023, 31 (02) : 260 - 284
[4] The effect of foreign institutional ownership on corporate tax avoidance: International evidence
Hasan, Iftekhar
Kim, Incheol
Teng, Haimeng
Wu, Qiang
[J]. JOURNAL OF INTERNATIONAL ACCOUNTING AUDITING AND TAXATION, 2022, 46
[5] Does foreign institutional ownership matter for stock price synchronicity? International evidence
Dang, Tung Lam
Vo, Thi Thuy Anh
Vo, Xuan Vinh
Nguyen, Linh Thi My
[J]. JOURNAL OF MULTINATIONAL FINANCIAL MANAGEMENT, 2023, 67
[6] Does climate risk exposure affect corporate leverage adjustment speed? International evidence
Zhou, Zihan
Wu, Kai
[J]. Journal of Cleaner Production, 2023, 389
[7] Foreign institutional ownership and auditor choice: Evidence from worldwide institutional ownership
Kim, Jeong-Bon
Pevzner, Mikhail
Xin, Xiangang
[J]. JOURNAL OF INTERNATIONAL BUSINESS STUDIES, 2019, 50 (01) : 83 - 110
[8] Foreign institutional ownership and auditor choice: Evidence from worldwide institutional ownership
Jeong-Bon Kim
Mikhail Pevzner
Xiangang Xin
[J]. Journal of International Business Studies, 2019, 50 : 83 - 110
[9] Leverage and foreign ownership in Hungary
Csermely, A
Vincze, J
[J]. RUSSIAN AND EAST EUROPEAN FINANCE AND TRADE, 2000, 36 (03): : 6 - 30
[10] The influence of local institutional dynamics on foreign ownership in international joint ventures: Speed, irregularity and synchronization
Hu, Tiancheng
Sun, Glorious
[J]. JOURNAL OF BUSINESS RESEARCH, 2024, 185

← 1 2 3 4 5 →