The nonlinear effect of foreign ownership on capital structure in Japan: A panel threshold analysis
Author | Zeitun, Rami |
Author | Goaied, Mohamed |
Available date | 2023-01-18T08:39:01Z |
Publication Date | 2021 |
Publication Name | Pacific Basin Finance Journal |
Resource | Scopus |
Abstract | This study scrutinizes the nonlinear relationship between foreign ownership and corporate leverage decisions by applying a panel threshold model to a sample that comprises a balanced panel data set of 1027 Japanese firms. Moreover, this study investigates whether a threshold for the level of foreign ownership moderates the effect of determinants on capital structure. The empirical findings support the existence of a threshold effect for foreign ownership on corporate capital structure and its determinants. Furthermore, our findings have managerial implications for foreign investors with a high level of ownership in that they should mainly use liquidity, profitability, and growth to reduce leverage. 2021 |
Language | en |
Publisher | Elsevier |
Subject | Capital structure Foreign ownership Leverage Monitoring power Ownership structure Panel threshold model |
Type | Article Review |
Volume Number | 68 |
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Finance & Economics [400 items ]