EconPapers    
Economics at your fingertips  
 

The impact of corporate governance practices on dynamic adjustment of capital structure of companies in Ukraine

Vitaliy Zheka ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: Managers are risk averse and less willing than risk neutral shareholders to take on debt. Therefore in firms with poor corporate governance practices, where manager’s preferences dominate shareholders’ objectives, we shall see less debt and slower rates of adjustment of the capital structure. A goal of the paper is to investigate the impact of corporate governance (shareholder rights, transparency and supervisory board arrangements) on the pace of capital structure adjustment. A dataset includes all open joint-stock companies in Ukraine for years 2000-2007. It is found that typical firm in Ukraine completed the required leverage adjustment in about two years. The paper documents evidence that firms that practice better corporate governance benefited from the improved liquidity in 2000-2007 the most as they adjusted their financial structures at higher rates. The coefficients for shareholder rights, supervisory board structure and supervisory board procedure are found to be significant. Transparency variable is not found to have significant impact on speed of adjustment.

JEL-codes: C23 E44 G32 G34 P2 (search for similar items in EconPapers)
Date: 2010-11-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://eercnetwork.com/default/download/creater/w ... 8fd6a9972ce557f3.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to eercnetwork.com:443 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eer:wpalle:10/07e

Ordering information: This working paper can be ordered from
EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine
https://eercnetwork.com/paper

Access Statistics for this paper

More papers in EERC Working Paper Series from EERC Research Network, Russia and CIS EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine.
Bibliographic data for series maintained by Anton Pashchenko ().

 
Page updated 2022-08-10
Handle: RePEc:eer:wpalle:10/07e