A recently published paper by Gugler and Weigand (2003) addresses the problem of the endogeneity of ownership, but an unresolved question remains. Where does this endogeneity come from? It is shown that the main source of endogeneity is the simultaneity between ownership and value.

Purpose -The aim of this paper is to analyse how financial decisions influence corporate ownership structure of Spanish family and non-family controlled firms. Design/methodology/approach -The authors derived two models in line with financial theory, which have then been estimated by using a...

The impact of economic distress on the financialstructure decisions of an industry has been under-investigated in the businessliterature.This research investigates the impact of the Portugueserecession of the early and mid 1990s on the financial structure decisions ofbusinesses within the...

Corporate Governance has become a relevant issue in the Financial Literature. However, teaching on Corporate Finance is not keeping up with this educational change, and textbooks on Corporate Finance remain quite standard in their contents. Only a few exceptions incorporate Corporate Governance...

This paper provides a complementary approach to the financial and strategy views of capital structure. According to our ownership view, capital structure is partly determined by the incentives and the goals of those who are in control of the firm. Our results strongly support this view. As a...

This study examines the determinants of financial insolvency costs, by making use of a more accurate indicator of the probability of insolvency and considering the effect of institutional differences on these costs. We find that insolvency costs are positively related to the probability of...

A recently published paper by Gugler and Weigand (Applied Economics Letters, 10, 483-486, 2003) addresses the problem of the endogeneity of ownership, but an unresolved question remains. Where does this endogeneity come from? We show that the main source of endogeneity is the simultaneity...

This paper investigates how insider ownership and ownership concentration influence a firm's investment-cash flow sensitivity. We propose a new empirical approach that allows us to account for the non-linearities of ownership structure with respect to firm value, and to distinguish between firms...