channels through which controlling shareholders expropriate minority shareholders by adopting a policy of excess leverage. We … found that firms with more excess control rights also have more excess leverage and the controlling shareholders of these …'s tunneling behavior. We argue that in emerging markets when legal protection for both creditors and shareholders is weak …

and their controlling shareholders use the resources for tunneling rather than investing in positive NPV projects. We also … party transactions are more positive after NTS reform. This confirms that tunneling by the controlling shareholders actually … reduced. We argue that in emerging markets where legal protection for creditors and shareholders is weak, controlling …

whether the cost-benefit tradeoff to shareholders, captured by the valuation impact of an additional dollar of debt on owners … shareholders view increasing debt to have a negative impact on their wealth, that is, shareholders perceive firms to be over … decisions. Managers respond to the changing cost to shareholders by reducing (increasing) leverage when the cost of debt …