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
收藏
页数：21
相关论文
共 50 条
  • [21] Social trust and foreign ownership: Evidence from qualified foreign institutional investors in China
    Jin, Dawei
    Wang, Haizhi
    Wang, Peng
    Yin, Desheng
    [J]. JOURNAL OF FINANCIAL STABILITY, 2016, 23 : 1 - 14
  • [22] Effects of Foreign Institutional Ownership on Foreign Bank Lending: Some Evidence for Emerging Markets
    Jiang, Liangliang
    Zhu, Yi
    [J]. INTERNATIONAL REVIEW OF FINANCE, 2014, 14 (02) : 263 - 293
  • [23] Speed of adjustment towards target leverage: evidence from a quantile regression analysis
    Nguyen, Thao
    Bai, Min
    Hou, Greg
    Truong, Cameron
    [J]. ACCOUNTING AND FINANCE, 2021, 61 (04): : 5073 - 5109
  • [24] Social trust and the speed of corporate leverage adjustment: evidence from around the globe
    Huang, Peng
    Lu, Yue
    Faff, Robert
    [J]. ACCOUNTING AND FINANCE, 2021, 61 (02): : 3261 - 3303
  • [25] Foreign institutional ownership and stock market liquidity: Evidence from Indonesia
    Rhee, S. Ghon
    Wang, Jianxin
    [J]. JOURNAL OF BANKING & FINANCE, 2009, 33 (07) : 1312 - 1324
  • [26] Ownership Concentration, Family Ownership and Leverage: Evidence from Malaysia
    Lean, Hooi Hooi
    Ting, Irene Wei Kiong
    Kweh, Qian Long
    [J]. MALAYSIAN JOURNAL OF ECONOMIC STUDIES, 2015, 52 (02) : 117 - 133
  • [27] Impact of Foreign Ownership on Leverage: A Study of Indian Firms
    Gupta, Surbhi
    Yadav, Surendra S.
    Jain, P. K.
    [J]. GLOBAL BUSINESS REVIEW, 2024, 25 (01) : 51 - 67
  • [28] Local social environment and the speed of leverage adjustment
    Li, Tongxia
    Lu, Chun
    [J]. ACCOUNTING AND FINANCE, 2023, 63 (02): : 1919 - 1952
  • [29] Heterogeneity in the Speed of Adjustment toward Target Leverage
    Elsas, Ralf
    Florysiak, David
    [J]. INTERNATIONAL REVIEW OF FINANCE, 2011, 11 (02) : 181 - 211
  • [30] Institutional distance and ownership in foreign acquisitions
    Gaur, Ajai
    Malhotra, Shavin
    Zhu, PengCheng
    [J]. JOURNAL OF INTERNATIONAL MANAGEMENT, 2022, 28 (02)
12345