 Governance and bank's capital structure: empirical evidence from a cross countries analysisAfrican Journal of Accounting, Auditing and Finance, 2014, vol. 3, issue 2, 149-169 Abstract: This paper examines the role of bank ownership structure on capital structure by [using the financial and ownership data from Caprio et al. (2007) that covered 244 banks across 44 countries]. We classified banks across the countries with geographical regional dummies indicating if the banks are located in Asia, Africa and Latin America (the reference category being OECD countries). We find that family-owner managed firms tend to have a lower debt. In addition, excessive control right of the controlling owner may significantly increase bank leverage. We suggest that in a family-owner managed firms there should be more dilution of ownership so that minority are not exploited as too much loan may lower bank value. Thus, banks need to be better regulated as excessive leverage has been identified as one of the reasons for the current financial crisis. Keywords: excessive leverage; family ownership; owner managed firms; cash flow rights; OLS; banks; banking industry; bank capital structure; ownership; governance; ordinary least squares; cross country analysis; Asia; Africa; Latin America; OECD countries; Organisation for Economic Co-operation and Development; debt levels; excessive control rights; value; regulation; financial crises. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ajaafi:v:3:y:2014:i:2:p:149-169 Access Statistics for this article More articles in African Journal of Accounting, Auditing and Finance from Inderscience Enterprises Ltd |
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