scholarly journals Capital Structure, Cash Holdings and Firm Value: A Study of Brazilian Listed Firms

2013 ◽  
Author(s):  
Jooo Caldeira ◽  
Tiago Loncan
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Cash Holdings ◽  
Listed Firms

scholarly journals Family Control And The Value Of Cash Holdings

2015 ◽  
Vol 31 (2) ◽  
pp. 647 ◽  
Author(s):  
Sabri Boubaker ◽  
Imen Derouiche ◽  
Majdi Hassen
Keyword(s):  
Firm Value ◽  
Family Firms ◽  
Cash Holdings ◽  
Firm Resources ◽  
Family Control ◽  
Large Sample ◽  
Listed Firms ◽  
Excess Cash ◽  
Cash Reserves ◽  
Corporate Cash Holdings

The present study investigates the effects of family control on the value of corporate cash holdings. Using a large sample of French listed firms, the results show that the value of excess cash reserves is lower in family firms than in other firms, reflecting investors concern about the potential misuse of cash by controlling families. We also find that the value of excess cash is lower when controlling families are involved in management and when they maintain a grip on control, indicating that investors do not expect the efficient use of cash in these firms. Our findings are consistent with the argument that the extent to which excess cash contributes to firm value is lower when dominant shareholders are likely to expropriate firm resources. Overall, family control seems to be a key determinant of cash valuation when ownership is concentrated.

scholarly journals Capital structure, firm value and managerial ownership: Evidence from East African countries

2021 ◽  
Vol 18 (1) ◽  
pp. 346-356
Author(s):  
Mishelle Doorasamy
Keyword(s):  
Capital Structure ◽  
East Africa ◽  
Firm Value ◽  
Negative Impact ◽  
Equity Capital ◽  
Managerial Ownership ◽  
East African ◽  
African Countries ◽  
Listed Firms ◽  
The Relationship

East African firms are experiencing economic growth and are attracting foreign investment in the form of equity capital and loans. However, there are concerns about whether the structure of the capital and managerial ownership of these firms can influence their growth. The study examined the relationship between capital structure and firm value in East African countries and how managerial ownership influences this relationship. Sixty-five (65) listed firms in East Africa were selected for the study. The study employed a GMM estimation technique. The evidence showed that leverage has a significantly negative impact on the value of firms in East Africa, suggesting that higher debt would result in a decrease of firm value. The implication of this result is that firms can increase their value by reducing their leverage level. Moreover, the study found that managerial ownership had an inverse and significant impact on the relationship between leverage and firm value. The conclusion is that leverage decreases the value of firms in East Africa. Another conclusion is that owner-managers can use debt capital more effectively to increase firm value than non-owner managers. The implication of this result is that firms managed by owners can borrow more for their operations because it would increase the value of the firms. This study is the first to examine how managerial ownership moderates the relationship between capital structure and the value of firms in East Africa, which has a unique political, social, cultural and economic environment.

scholarly journals Struktur Modal dan Kinerja Perusahaan (Studi pada perusahaan yang terdaftar di Bursa Efek Indonesia periode 2011 s/d 2012)

2014 ◽  
Vol 5 (1) ◽  
Author(s):  
Novi S Budiarso
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Firm Value ◽  
Stock Exchange ◽  
Optimal Level ◽  
Stock Exchanges ◽  
Listed Firms ◽  
Total Debt ◽  
The Impact

Abstract This paper examine the impact of capital structure on firm performance, in Indonesian Stock Exchange. Firm performance are analyzed from the side of accounting indicators, in this research use liquidity. Because the optimal level of debt of the firm is limited by the liquidity of the assets and it depends on the average usage of the debt in the particular industry. In the other side liquidity  is  conventionally  seen  as  reflecting  investors’  degree  of  risk -aversion, The study collects  of listed firms in Indonesian Stock Exchanges during 2011 to 2012. The listed firms on sub sector trade, services and investment. Multiple Regression analysis approach was employed in carrying out this analysis. Specifically, determined the simultaneous relationships among the various variables. The results show that as partial total debt to asset significantly influences to company’s performance but long term debt to asset not significantly influences to company’s performance. Simultaneously, total debt to asset and  long term debt to asset influences company’s performance. This evidence is consistent with models of optimal capital structure and with the hypothesis that debt level changes release information about changes in firm value/performance.

scholarly journals Determinants of Firm Value in Kenya: Case of Commercial Banks Listed at the Nairobi Securities Exchange

2015 ◽  
Vol 1 (2) ◽  
pp. 129 ◽  
Author(s):  
Aloys Ayako ◽  
Fidelis Wamalwa
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Firm Value ◽  
Cash Flows ◽  
Model Estimation ◽  
Joint Effects ◽  
Listed Firms ◽  
Macroeconomic Control ◽  
Individual Effects ◽  
The Individual

This study analysed the determinants of firm value of commercial banks listed at the Nairobi Securities Exchange (NSE). The analysis was based on secondary panel data over the period 2002 to 2012. The estimation results of the random effects regression model showed that, though statistically significant (p<0.05), the joint effects of the determinants under the study was low, accounting for about 30  per cent of the variance of the firm value of the listed commercial banks in Kenya. At the individual determinant level, the estimation results were mixed. While we could not reject the null hypotheses that assets, capital structure, cash flows, dividend ratio and intangible had no statistically significant individual effects on the firm value of the listed commercial banks (p<0.05), we rejected the null hypotheses and concluded that market capitalization had statistically significant individual effects on the firm value of the listed commercial banks (p<0.05). Given the relatively low joint effects of the determinants under the study, we recommends that further studies should be undertaken to identify and include additional firm specific and both industry level and macroeconomic control variables. The studies should also evaluate the effects of alternative computation of firm value on the model estimation results. The studies may focus on firm value of the listed commercial banks and/or other listed firms in the NSE

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