TY - JOUR
T1 - Capital structure, ownership concentration and firm performance
T2 - Evidence of reverse causality hypothesis in asean countries
AU - Viverita, null
N1 - Publisher Copyright:
© 2015, Virtus Interpress. All rights reserved.
PY - 2015/6/1
Y1 - 2015/6/1
N2 - This study aims to examine effect of capital structure and ownership structure on firm performance. In addition, this study also examines the existence of reverse causality of the relation between capital structure and performance of firms in three ASEAN countries. We test the reverse causality hypothesis of firm performance to capital structure, which is viewed in light of two competing hypotheses: the efficiency-risk hypothesis and franchise-value hypothesis. In general, the results support the agency–cost hypothesis, and confirm reverse causality hypothesis in in the sample firms, through the existence of entrenchment effect in firms with the lowest and highest level of ownership concentration and the franchise value hypothesis.
AB - This study aims to examine effect of capital structure and ownership structure on firm performance. In addition, this study also examines the existence of reverse causality of the relation between capital structure and performance of firms in three ASEAN countries. We test the reverse causality hypothesis of firm performance to capital structure, which is viewed in light of two competing hypotheses: the efficiency-risk hypothesis and franchise-value hypothesis. In general, the results support the agency–cost hypothesis, and confirm reverse causality hypothesis in in the sample firms, through the existence of entrenchment effect in firms with the lowest and highest level of ownership concentration and the franchise value hypothesis.
KW - ASEAN
KW - Capital structure
KW - Firm performance
KW - Ownership structure
KW - Reverse causality hypothesis
UR - http://www.scopus.com/inward/record.url?scp=84937873514&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84937873514
VL - 12
SP - 451
EP - 461
JO - Corporate Ownership and Control
JF - Corporate Ownership and Control
SN - 1727-9232
IS - 4CONT4
ER -