Please use this identifier to cite or link to this item:
Title: Corporate governance, ownership structure and capital structure: Evidence from Chinese real estate listed companies
Authors: Feng, Y
Hassan, A
Elamer, A
Keywords: corporate governance;agency theory;board structure;ownership structure;capital structure
Issue Date: 7-Jul-2020
Publisher: Emerald Publishing
Citation: Feng, Y., Hassan, A. and Elamer, A.A. (2020) 'Corporate governance, ownership structure and capital structure: evidence from Chinese real estate listed companies', International Journal of Accounting & Information Management, 28 (4), pp. 759 - 783. doi: 10.1108/IJAIM-04-2020-0042.
Abstract: Purpose: This paper aims to contribute to the existing capital structure and board structure literature by examining the relationship among corporate governance, ownership structure and capital structure. Design/methodology/approach: The paper uses a panel data of 595 firm-year observations from a unique and comprehensive data set of 119 Chinese real estate listed firms from 2014 to 2018. It uses fixed effect and random effect regression analysis techniques to examine the hypotheses. Findings: The results show that the board size, ownership concentration and firm size have positive influences on capital structure. State ownership and firm profitability have inverse influences on capital structure. Research limitations/implications: The findings suggest that better-governed companies in the real estate sector tend to have better capital structure. These findings highlight the unique Chinese context and also offer regulators a strong incentive to pursue corporate governance reforms formally and jointly with the ownership structure. Finally, the results suggest investors the chance to shape detailed expectations about capital structure behavior in China. Future research could investigate capital structure using different arrangement, conducting face-to-face meetings with the firm’s directors and shareholders. Practical implications: The findings offer support to corporate managers and investors in forming or/and expecting an optimal capital structure and to policymakers and regulators for ratifying laws and developing institutional support to improve the effectiveness of corporate governance mechanisms. Originality/value: This paper extends, as well as contributes to the current capital structure and corporate governance literature, by proposing new evidence on the effect of board structure and ownership structure on capital structure. The results will help policymakers in different countries in estimating the sufficiency of the available corporate governance reforms to improve capital structure management.
ISSN: 1018-368X
Appears in Collections:Brunel Business School Research Papers

Files in This Item:
File Description SizeFormat 
FullText.pdfThis author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact MBAdobe PDFView/Open

This item is licensed under a Creative Commons License Creative Commons