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 300
- Downloads 0
Transformational Leadership and Organizational Performance
The study is an investigation of transformationa l leadership impact on organizational performance; the mediating ro le of organizational innovation. The study revealed that organiza...
Relationship between HR Practices & Employee Turnover Intentions by Taking Moderating Effect of Neuroticism and Extroversion.
Th e study is association study because the relationship between employee turnover intentions and HR practices is studied by taking moderation effect of neuroticism and extroversion . T h...
Impact of Organizational Justice on Turnover Intentions: Moderating Role of Job Embeddedness
It is evident from the past research that employees who perceive t he organizational policies as not just, the employees tend to leave the organizations and start their professional career...
Compliance of Financial Statements of Islamic Banks of Pakistan with AAOIFI Guidelines in General Presentation and Disclosure
Obj ective - This study intends to investigate the extent of voluntary financial reporting compliance made by Islamic banks of Pakistan as suggested by Islamic accounting standards (i.e. AAOIFI...
Determinants of Adolescents Well Being
Well - being is a dynamic concept that includes subjective, social, and psychological dimensions as well as health - related behaviors. Adolescents form two - thirds of our population, this is a unique group of...