Kelvin Henry Kyissima, Gong Zhang Xue, Thales Pacific Yapatake Kossele and Ahmed Ramadhan Abeid
The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.
Abstract
Purpose
The purpose of this paper is to analyze the corporate capital structure stability of listed firms in China during the period 1990–2013.
Design/methodology/approach
The study uses panel data from a sample of 716 firms that have been listed in China for at least 15 years. A fixed-effects panel data regression model with time effects is used in the estimation.
Findings
The findings show that size, profitability and investment opportunities have a significant influence on capital structure, whereas the tangibility of assets is not found to be significant. Few industries show significance in explaining differences and variation in leverage ratios.
Social implications
It is recommended by this study that corporate managers of listed firms in China should consider leverage ratios variation while choosing the capital structure.
Originality/value
This study can be helpful in assisting companies to make financing decisions and setting up strategies relevant in their growth and profitability. The study will also have a significant assistance to bring to light corporate issues to policy makers, especially in the areas of both equity and debt financing, particularly the bond market. To the society, this study will show the nature of Chinese-listed companies, and it can assist individual investors in making decisions regarding companies in which they hold investments and in making meaningful comparisons with other companies. The paper also aims at contributing to the existing literature on the empirical study on capital structure.
Details
Keywords
Thales Pacific Yapatake Kossele and Magalie Gabriella Ngaba Mbai-Akem
The purpose of this paper is to investigate the effect of corruption control on capital flight in the least corrupt African countries.
Abstract
Purpose
The purpose of this paper is to investigate the effect of corruption control on capital flight in the least corrupt African countries.
Design/methodology/approach
Using panel data covering the period of 1996-2010.
Findings
The results show that the extent of corruption, the total natural resources rent are statistically significant and affect positively the capital across the pooled, random and fixed effects. Inflation and economic growth are also found to have a negative impact on capital flight. Moreover, the exchange rate has a negative and significant effect on capital flight.
Practical implications
The findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries.
Social implications
The paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.
Originality/value
The findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries. The paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.