Akhtar, Shumi, Akhtar, Farida, Kose, John, and Ye, Ye (2018) Influence of institutional shareholders and corporate governance on issuance and proceeds. Working Paper. UNSPECIFIED. (Unpublished)

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Abstract

This paper investigates the effect of institutional shareholding and corporate gover-nance on two aspects of financial decision-making – debt and equity issuance andthe utilization of proceeds from the issuance. We develop a new governance measureand find that well-governed firms are more likely to issue debt rather than equity.Further, strong governance has a significant positive effect on dividend paymentsafter debt issuance, indicating good alignment of managers’ and shareholder’ interest.Also, cash holdings for discretionary motives are not affected by the joint effectof debt/equity security issuance and corporate governance. Finally, institutionalshareholding plays a critical role for firms dividend payment and cash management.

Item ID:	62876
Item Type:	Report (Working Paper)
Date Deposited:	13 Jul 2020 23:46
FoR Codes:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150201 Finance @ 50% 15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1502 Banking, Finance and Investment > 150299 Banking, Finance and Investment not elsewhere classified @ 50%
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