Bui, Thuy
(2017)
Corporate Blockholders and Leverage.
Doctoral Dissertation, University of Pittsburgh.
(Unpublished)
Abstract
This paper investigates the relationship between corporate block ownership and firm leverage. Corporate blockholders – nonfinancial firms who hold more than five percent equity in another industrial corporation − can affect a firm’s policies through their business relationships, monitoring, or through expropriation. By examining the evolution of corporate block ownership after block formation, I find that corporate block ownership is negatively related to firm leverage in fixed-effects and dynamic GMM regressions. In addition, corporate blockholders often obtain board seats, indicating that corporate investors are actively involved in governance activities. Furthermore, the negative relationship between corporate blocks and leverage becomes stronger when corporate blockholders have more board representation on the target firm, when the firm has higher agency costs, and when there is no product market relationship between corporate blockholders and the firm. Overall, my findings suggest that corporate blockholders play an important monitoring role in firm policies and can substitute for other monitoring mechanisms including leverage and institutional investors.
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Details
| Item Type: |
University of Pittsburgh ETD
|
| Status: |
Unpublished |
| Creators/Authors: |
|
| ETD Committee: |
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| Date: |
28 September 2017 |
| Date Type: |
Publication |
| Defense Date: |
4 August 2017 |
| Approval Date: |
28 September 2017 |
| Submission Date: |
18 August 2017 |
| Access Restriction: |
No restriction; Release the ETD for access worldwide immediately. |
| Number of Pages: |
71 |
| Institution: |
University of Pittsburgh |
| Schools and Programs: |
Joseph M. Katz Graduate School of Business > Business Administration |
| Degree: |
PhD - Doctor of Philosophy |
| Thesis Type: |
Doctoral Dissertation |
| Refereed: |
Yes |
| Uncontrolled Keywords: |
leverage, debt, capital structure, blockholders, governance, agency, corporate blockholders |
| Date Deposited: |
28 Sep 2017 15:33 |
| Last Modified: |
28 Sep 2017 15:33 |
| URI: |
http://d-scholarship.pitt.edu/id/eprint/33116 |
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