Board member age,stock seasoning and the evolution of capital structure in Chinese firms |
| |
Authors: | Paul B McGuinness |
| |
Institution: | Department of Finance, CUHK Business School, Room 1212, Cheng Yu Tung Building, The Chinese University of Hong Kong, Sha Tin, New Territories, Hong Kong |
| |
Abstract: | This study examines the evolution of capital structure for Chinese stock issuers over an eleven-year period, stretching three years pre- to eight years post-listing. The paper scrutinizes the role of a key demographic in this seasoning process: The age of board officers. The present study’s key postulate is that board age proxies for a firm’s growth options. While issuer indebtedness exhibits little to no connection with other board properties, a strong inverse association exists with officer age. Moreover, entities with older boards experience notably smaller contractions in leverage on listing, as well as more subdued upswings post-IPO. Results are congruent with older board firms possessing fewer growth options and raising less capital at IPO. Additionally, study findings suggest that the Global Financial Crisis delayed Chinese firms’ re-leveraging adjustments post-IPO. Finally, changes to leverage at IPO, and in the years thereafter, appear similar for both hot- and cold-market issuers. |
| |
Keywords: | Board member age Corporate leverage Stock seasoning Chinese issuers Hong Kong hot-issue markets |
本文献已被 ScienceDirect 等数据库收录! |
|