Capital Structure Dynamics and Bank Affiliation of Business Groups
Journal Title: SEISENSE Journal of Management - Year 2018, Vol 1, Issue 1
Abstract
Objective – An empirical investigation to assess th e impact of bank - affiliated business group on firm’s capital structure decisions. Design/methodology/approach – A sample of 146 group affiliated firms and subsamples for bank and non - bank affiliated firms was analyzed with random - effect panel regression m odel to determine the relationship of bank - affiliated business group on firm’s capital structure determinants of listed firms in Pakistan using data for 2006 - 2011. Findings – We have found that bank affiliated firms financing decisions are significantly di fferent from that of non - bank affiliated firms with a common factor of internal capital market. Bank affiliated firm capital structure determinants of growth, asset tangibility, non - debt tax shield and operating risk show significantly different associati on with choice of leverage compared to non - bank affiliated firms. Policy implications – Our results show that group affiliated firms particularly bank affiliated firms are the reason of market imperfections and have successfully eliminated the market dist ortions keeping others on a disadvantage. Hence, Policy makers are suggested to improve the regulatory system and its implementation. Originality/value – According to best of our knowledge this is the first study to extend the literature of firm financing decisions in relation to bank - group affiliation in Pakistan .
Authors and Affiliations
Qamar uz Zaman
Keywords
Related Articles
- EP ID EP39057
- DOI -
- Views 302
- Downloads 0
Impact of HR Policies and Practices on Employee Job Satisfaction
Aim - This research highlights the HR policies and practice s in terms of compensation and performance evaluation and its impact on employee job satisfaction. This study will fill the gap in the...
Impact of Financial Leverage on Firm Performance
The aim of this research is to identify the relationship between financial leverage and the performance of Textile Composite Companies of Pakistan. Pakistan Textile Composite Companies which are listed...
The Effect of Budgetary Participation, Organizational Commitment, and Leadership Styles on the Employees’ Performance
Aim - This study aimed at gaining the empirical evidence vis - a - vis the effect of budgetary participation, organizational commitment, and leadership styles on the employees’ performance....
The Mediating Effect of Intellectual Capital on Corporate Governance and Performance of Conglomerates in Nigeria
Purp ose : T he nature of diversification in the form of conglomerates is the research theme for this study. Thus, CG’s functions on FP on conglomerates firms of Nigerian economy was studied wh...
The Impact of Strategic Planning on Growth of Small Businesses in Nigeria.
Purpose - T here is a need to develop a framework that will improve the understandings of business planning and performance and its effects on growth particularly during the...