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 329
- Downloads 0
Impact of Talent Management Practices on Employee Performance
Purpose - The purpose of this study was to determine the effect of talent management practices on employee performance among employees working in healthcare organization...
Capital Structure Dynamics and Bank Affiliation of Business Groups
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...
Conceptual Framework of Relationship between H uman R esource practices and Employee Turnover Intention .
A high turnover costs can have significant impact on compan y. Turnover intention has attained substantial consideration in last few decades and has been comprehensively studied because of...
Ransomware Attack on Medstar: Ethical Position statement
Medstar Health was the target of ransomware attack in 2016. The attack impacted the provision of healthcare services to the patient. Medstar opted not to pay the ransom and, instead, responded by shutting down its...
Idea of Collateral and Guarantor in Islamic Bank Financing
This study explores the idea of Islamic banks requesting for collateral or guarantee when financing, the rationale for requesting loan security, and its acceptability from Islamic perspectives....