Corporate governance and capital structure: dynamic panel threshold analysis

Corporate Governance and Capital Structure Dynamics

We develop a dynamic tradeoff model to examine the importance of manager-shareholder conflicts in capital structure choice. In the model, firms face taxation, refinancing costs, and liquidation costs. Managers own a fraction of the firms’ equity, capture part of the free cash flow to equity as private benefits, and have control over financing decisions. Using data on leverage choices and the mo...

Capital Structure , Corporate Governance , and the Effect of Sarbanes - Oxley

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to...

Institutions, Corporate Governance and Capital Flows

Article history: Received 1 June 2013 Received in revised form 11 March 2015 Accepted 12 March 2015 Available online 21 March 2015 JEL classification: F21 F41 G15

Making Capital Markets Work through Corporate Governance

Corporate Governance, Firm Size and Liquidity Constraints: A Dynamic Analysis

A rich panel data for a large and representative sample of firms is used to estimate the sensitivity of access to capital to differing ownership structures and firm sizes. The investment behaviour of firms is examined in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. The empirical work is based on the derivation of Euler equations in the ...