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- Publisher
- Wiley
- Copyright
- Copyright © 2013 International Review of Finance Ltd
- ISSN
- 1369-412X
- eISSN
- 1468-2443
- DOI
- 10.1111/irfi.12014
- Publisher site
- See Article on Publisher Site
Abstract
We analyze the impact of firm‐specific stock market liberalization events on the capital structure and debt maturity decisions of firms from emerging market economies. We differentiate between firms based on their ownership structures at the time of liberalization and analyze their post‐liberalization behavior regarding corporate financing decisions. Our empirical results show that single–class‐share firms (typically with stronger corporate governance and better information environments) respond differently to their dual–class‐share counterparts. Liberalization results in lower debt reliance for the former group while the latter lengthen the maturity of their debt portfolios. Jel Classification: F30; G15; G32.
Journal
International Review of Finance – Wiley
Published: Sep 1, 2013