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Capital Structure And Firm Performance In Emerging Economies: An Empirical Analysis Of Sri Lankan Firms, Anura De Zoysa, Muhammad Chowdhury, Palli Mulla K A Chandrakumara, Athula Manawaduge
Capital Structure And Firm Performance In Emerging Economies: An Empirical Analysis Of Sri Lankan Firms, Anura De Zoysa, Muhammad Chowdhury, Palli Mulla K A Chandrakumara, Athula Manawaduge
Anil Chandrakumara
This paper offers an empirical analysis of the impact of capital structure on firm performance in thecontext of an emerging marketÿSri Lanka. The study applies both pooled and panel data regressionmodels for a sample of 155 Sri Lankan-listed firms. The results demonstrate that most of the SriLankan firms finance their operations with short-term debt capital as against the long-term debtcapital and provide strong evidence that the firm performance is negatively affected by the use of debtcapital. The study also finds a significant negative relationship between tangibility and performanceindicating inefficient utilization of non-current assets. The negative performance implicationsassociated with over-utilization of …
Capital Structure And Its Implications: Empirical Evidence From An Emerging Market In South Asia, Athula Manawaduge, Anura De Zoysa, Palli Mulla K A Chandrakumara
Capital Structure And Its Implications: Empirical Evidence From An Emerging Market In South Asia, Athula Manawaduge, Anura De Zoysa, Palli Mulla K A Chandrakumara
Anil Chandrakumara
Using panel data regression analysis for a sample of 171 companies, this paper examines the implications of capital structure of corporate entities in an emerging market, Sri Lanka. The results demonstrate that most of the Sri Lankan firms finance their operations with short-term debt capital as against the long-term debt capital. It provides strong evidence to indicate that debt capital has a negative impact on firm performance. The study also found a significant negative relationship between tangibility and performance indicating inefficient utilization of non-current assets. The negative performance implications associated with over-utilization of short-term debts and the under-utilization non-current assets …
Venture Capital And Executive Incentives In China, Jerry Cao, Qigui Liu, Gary Tian
Venture Capital And Executive Incentives In China, Jerry Cao, Qigui Liu, Gary Tian
Qigui Liu
This paper examines the effect that venture capital (VC) has on the pay-performancerelationship in listed Chinese firms. We find that VC has a significantly positive effect onCEO compensation and the pay-performance relationship, such effect particularly stronger infirms needing more managerial efforts and discretions (higher growth opportunity or higherlevels of capital expenditure). In addition, we show that VC-backed firms with moremanagerial discretions are more likely to use stock options. The evidence suggests thatventure capital investors use more sensitive compensation contract for top executives inChinese when the need for managerial discretion is greater. Such compensation schemes byVCs enhance firm performance subsequently.