The Role of Investment, Financing and Dividend Decisions in Explaining Corporate Ownership Structure: Empirical Evidence from Spain
[EN] This paper analyses the determinants of ownership structure by focusing on the role played by investment, financing and dividend decisions. The use of the Generalised Method of Moments allows us to provide new evidence on this important corporate governance topic, since it controls for the endo...
| Autores: | , |
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| Tipo de documento: | artigo |
| Estado: | Versão publicada |
| Data de publicação: | 2006 |
| País: | España |
| Recursos: | Universidad de Salamanca (USAL) |
| Repositório: | GREDOS. Repositorio Institucional de la Universidad de Salamanca |
| OAI Identifier: | oai:gredos.usal.es:10366/149756 |
| Acesso em linha: | http://hdl.handle.net/10366/149756 |
| Access Level: | Acceso aberto |
| Palavra-chave: | Ownership structure Investment Financing and dividend decisions Agency costs panel data 5311 Organización y Dirección de Empresas 5311.02 Gestión Financiera 5307.13 Teoría de la Inversión |
| Resumo: | [EN] This paper analyses the determinants of ownership structure by focusing on the role played by investment, financing and dividend decisions. The use of the Generalised Method of Moments allows us to provide new evidence on this important corporate governance topic, since it controls for the endogeneity problem. Our most relevant findings show that: i) increases in debt lead insiders to limit the risk they bear by reducing their holdings; ii) monitoring by large outside owners substitutes for the disciplinary role of debt; and iii) both inside and outside owners are encouraged to increase their stakes in the firm in view of higher dividends. Our results hold after controlling for equity issues and share repurchases. |
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