Capital structure and board of directors: a quintile regression approach
DOI:
https://doi.org/10.17811/ebl.8.3.2019.130-137Abstract
This paper documents asymmetric impact of various board characteristics on capital structure in six European countries (Austria, Belgium, France, Germany, Luxembourg and Netherlands) during the period between 2008 and 2014. Quintile regression estimates show asymmetric impact of independence of board’s audit committee, presence of CEO in the board, and Chairmanship of Ex-CEO on capital structure at 10th and 90th quintile.
References
Abbott, L.J., Parker, S., Peters, G.F. and Raghunandan, K., (2003). The Association Between Audit Committee Characteristics And Audit Fees. Auditing: A Journal of Practice and Theory, 22(2), pp. 17-32.
Asquith, P. and Mullins, D., (1986). Equity Issues and Offering Dilution. Journal of Financial Economics, 15(1-2), pp. 61-89.
Beasley, M.S., (1996). An Empirical Analysis of the Relation between the Board of Director Composition and Financial Statement Fraud. The Accounting Review, 71 (4), pp. 443-466.
Erickson, J., Park, Y.W., Resing, J., and Shin, H-H., (2005). Board Composition and Firm Value under Concentrated Ownership: The Canadian Evidence. Pacific- Basin Finance Journal, 13(4), pp. 387-410.
Gamba, A. and Triantis, A., (2014). How Effectively Can Debt Covenants Reduce Financial Agency Costs? Working Paper, Warwick Business School, UK.
Harvey, C., Lins, K., and Roper, A., (2004). The Effect of Capital Structure When Expected Agency Costs are Extreme. Journal of Financial Economics, 74(1), pp. 3-30.
Jensen, M., (1986). Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review, 76(2), pp. 323-329.
Jerzemowska, M., (2006). The Main Agency Problems and their Consequences. Acta Oeconomica Pragensia, 2006(3), pp. 9-17.
Klein, A., (1998). Firm Performance and Board Committee Structure. The Journal of Law & Economics 41(1), pp. 275-303.
Mello, A. and Parsons, J., (1992). Measuring the Agency Cost of Debt. The Journal of Finance, 47(5), pp. 1887-1904.
Myers, S. and Majluf, N., (1984). Corporate Financing and Investment Decisions when Firms have Information that Investors do not have. Journal of Financial Economics, 13(2), pp. 187-221.
Quigley, T.J. and Hambrick, D.C., (2012). When the Former CEO Stays on as Board Chair: Effects on Successor Discretion, Strategic Change, and Performance. Strategic Management Journal, 33(7), pp. 834–859.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
