Specifications

Publisher: IEEE Computer Society, 2001 L Street N.W., Suite 700, Washington, DC 20036-4928,
United States
Abstract: To disclose the effects of separation of ultimate controlling rights and cash flow rights
on debt financing cost, this paper examines empirically how ultimate controlling shareholder
influences cost of debt, based on a balanced panel (4880 observations in total) composed of 976
non-financial companies listed in Shenzhen and Shanghai stock exchange during 2006 ∼ 2010
and applied random effect model and parametric tests to empirically investigate the impact of
separation of ultimate controlling rights and cash flow rights on debt financing cost by controlling
related variables. The results show that the separation of ultimate controlling right and cash flow
right does affect cost of debt. Specifically speaking, (1) the ultimate controlling shareholders' cash
flow rights is negatively related to cost of debt, indicating that the higher cash flow rights of
ultimate controlling shareholders,the lower the cost that it expropriates the debtor,the listed
company will use little cost of debt;(2) the degree of separation of ultimate controlling
shareholders' control rights and cash flow rights has significantly negative correlation with cost of
debt, indicating that the supplier of debt capital will charge for higher capital cost for higher
separation of control rights and cash flow rights in order to mitigate agency conflicts, compared
with those companies without separation of control right and cash flow right. © 2012 IEEE.
Number of references: 20
Main heading: Costs
Controlled terms: Industry - Management science - Shareholders
Uncontrolled terms: Capital costs - Cash flow - Control rights - Controlling
shareholders - Debt financing - Degree of separation - Listed companies - Negative
correlation - Parametric test - Random-effect models - Related variables -
Shanghai stock exchanges - ultimate controlling
Classification code: 911 Cost and Value Engineering; Industrial Economics - 912.2
Management
DOI: 10.1109/ICMSE.2012.6414344
Database: Compendex
Compilation and indexing terms, © 2013 Elsevier Inc.
3.
Accession number: 20131016083574
Title: Effect investigation of relative humidity and temperature on multi-layer corrugated
sandwich structures
Authors: Dongmei, Wang1 ; Huxiang, Gong1, 2 ; Ziyou, Bai1/王冬梅;;
Author affiliation: 1 Media and Communication School, Shenzhen Polytechnic, Shenzhen
518055, China
2 Printing and Packaging Engineering School, Xi'an University of Technology, Xi'an, China
Corresponding author: Dongmei, W. ([e-mail])
Source title: Journal of Sandwich Structures and Materials
Abbreviated source title: J. Sandw. Struct. Mater.
Volume: 15