Does minority management affect a firm's capital structure? Evidence from Japan

Rami Zeitun, Mohamed Goaied and Hisham Al Refai

Finance Research Letters, 2022, vol. 50, issue C

Abstract: This study evaluates the effect of minority management (MG) on capital structure for a sample of listed Japanese companies over three sectors. We used a dynamic panel, threshold-based model that can control for endogeneity to investigate the linkage between the speed of adjustment of leverage and MG, with the results proving that there is significant linkage between MG and leverage. We also observed that the level of MG has a threshold effect on leverage, such that firms with a high level of MG can reach their optimal leverage faster than those with a low level of MG.

Keywords: Minority management; Agency problem; Monitoring power; Leverage; Dynamic panel threshold (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:50:y:2022:i:c:s1544612322004743

DOI: 10.1016/j.frl.2022.103290

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