University of Twente Student Theses
The influence of ownership structure and board of directors on the capital structure of Dutch listed firms.
Wiegers, M.G.M. (2022) The influence of ownership structure and board of directors on the capital structure of Dutch listed firms.
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| Abstract: | This research investigates the corporate governance influence on the firm’s capital structure. Studies provide mixed results on the corporate governance characteristics of ownership structure and board of directors’ influences on firm leverage. Therefore, hypotheses are included for the variables; ownership concentration, family ownership, board size, board independence, and board gender diversity influence the firm leverage, while leverage is measured by total, long-term, and short-term debt. The sample of 100 Dutch-listed firms from the period 2017 until 2020 is retrieved from the Orbis database, where additional data is hand-collected from reports of the firms. An OLS (ordinary least square) regression analysis is used to test the hypotheses. Because of multicollinearity, the dependent variable long-term debt does not provide a conclusion. The regression analyses result show that family shares ownership significantly negatively influences the firm's total debt, whereas board independence significantly negatively influences the total and short-term debt. For board size, the results show a significant negative influence on short-term debt. For variables ownership concentration and board gender diversity, non-significant results are observed. The robustness tests with lagged variables and timely subsample are included for the validity and reliability of the results, confirming the results. This research has some limitations related to the number of corporate governance characteristics and the sample, which provide future research opportunities. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/93928 |
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