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English

Is debt a governance device against the control leverage ? The case of European firms

Contributors

Gaud, Philippe

Collection

  • Cahiers de recherche; 2005.06

Publication date

2005

Abstract

This paper documents that there is no relationship between ultimate ownership structure and firm performance among non-financial listed firms in Europe. The use of the control leverage by some ultimate owners is value destroying however. We show that firms rely on debt to counterbalance this effect because they face market pressures. These results are obtained from a large sample that allows to carry out a simultaneous equation system estimation of firm performance and financial structures where these variables are treated as endogenous.

Keywords

  • Ownership structure
  • Corporate governance
  • Capital structure
  • Separation of ownership and control

UNIGE affiliation entities

Citation (ISO format)

GAUD, Philippe. Is debt a governance device against the control leverage ? The case of European firms. 2005

Main files (1)

Report

Identifiers

  • PID : unige:5758
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850downloads

Technical informations

Creation

15/04/2010 12:19:49

First validation

15/04/2010 12:19:49

Update

14/03/2023 15:26:28

Status update

14/03/2023 15:26:28

Last indexation

29/10/2024 14:22:18
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