Original scientific paper

https://doi.org/10.1080/1331677X.2019.1661000

Does state ownership really matter for capital structure in selected G-20 economies?

Muhammad Yusuf Amin orcid.org/0000-0003-1569-9881 ; Department of Banking and Finance, Eastern Mediterranean University, Famagusta, North Cyprus; b Institute of Business and Leadership, Abdul Wali Khan University Mardan (AWKUM), Mardan, Pakistan
Mustafa Besim ; Department of Banking and Finance, Eastern Mediterranean University, Famagusta, North Cyprus
Zahoor Ul Haq orcid.org/0000-0001-6813-6746 ; Department of Economics, Pakhtunkhwa Economic Policy Research Institute (PEPRI), Faculty of Business and Economics, Abdul Wali Khan University Mardan, Pakistan

Abstract

The effect of state ownership on the capital structure decisions of enterprises in selected G-20 countries is estimated using financial and accounting data of 252 state-owned and 6503 non-state- owned firms for the period 2011–2015. The results indicate that state ownership is positively associated with leverage in all the selected G-20 countries. However, this phenomenon changed when countries were considered according to their income levels because state-owned enterprises in high-income countries carry more debt, while the opposite is true for lower-middle-income countries. The results were also divergent when the effects of various firm-specific variables were compared between state and non-state-owned enterprises across the development spectrum.

Keywords

State-owned enterprises; income level; capital structure; tangibility; size; tobin’s Q; profitability

Hrčak ID:

229641

URI

https://hrcak.srce.hr/229641

Publication date:

22.1.2019.

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