Corporate ownership,debt,and expropiation: Evidence from China/ Yunxia Bai
Material type:
- text
- unmediated
- volume
- 2169-7221
Item type | Current library | Call number | Vol info | Copy number | Status | Notes | Date due | Barcode | |
---|---|---|---|---|---|---|---|---|---|
![]() |
Main Library - Special Collections | HF5660 CHI (Browse shelf(Opens below)) | Vol 1, No 1 pages 13-32 | SP17843 | Not for loan | For In-house use only |
We provide direct evidence on the dark side of leverage and offer new insights regarding the role of debt in corporate governance. Using a sample of Chinese state-owned enterprises that have experienced a transfer of controlling rights, we find a positive and significant relationship between expropriation and debt usage. Firms controlled by private block shareholders tend to have higher leverage due to excessive expropriation via debt. The evidence we document provides fresh insights into the impact of debt on the agency problem between the controlling shareholder and minority shareholders, and suggests the presence of expropriation through debt and its conditional effect on corporate ownership.
There are no comments on this title.