Ownership structure and financial distress: is the tale from Sub-Saharan Africa different?

IF 1.4 Q3 ECONOMICS
Mohammed Abdulkadir, Samuel Nduati Kariuki, Peter Wang’ombe Kariuki
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引用次数: 0

Abstract

Purpose

The paper investigates the effect of ownership structure on the financial distress of firms listed in sub-Saharan Africa.

Design/methodology/approach

Using secondary data from 106 non-financial firms listed in 9 selected SSA countries from 2016 to 2021, the research using paired t-tests and conditional logistic regression model analysed a sample of 174 distressed observations matched with 174 non-distressed observations.

Findings

T-tests determined significant differences between distressed and non-distressed groups concerning institutional, foreign, and local ownership. Conditional logistic results established that institutional, foreign, and state ownership significantly reduce distress. However, managerial ownership does not influence financial distress while a significant positive relationship is observed between local ownership and financial distress.

Originality/value

This is the first study to investigate the influence of ownership structure, including local ownership, on financial distress in SSA, employing a unique methodology of matched design and conditional logistic regression analysis. Furthermore, the paper presents cross-country evidence from emerging frontier markets, highlighting the importance of governance frameworks in firms’ stability.

所有权结构与财务困境:撒哈拉以南非洲的故事是否与众不同?
本文研究了所有权结构对撒哈拉以南非洲地区上市企业财务困境的影响。设计/方法/途径利用 2016 年至 2021 年在 9 个选定的撒哈拉以南非洲国家上市的 106 家非金融企业的二手数据,使用配对 t 检验和条件逻辑回归模型分析了 174 个困境观察值与 174 个非困境观察值的匹配样本。条件逻辑结果表明,机构、外国和国家所有权能显著减少困境。原创性/价值 这是首次采用匹配设计和条件逻辑回归分析的独特方法,研究所有权结构(包括地方所有权)对 SSA 财务困境的影响。此外,本文还提出了新兴前沿市场的跨国证据,强调了治理框架对企业稳定性的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.20
自引率
7.70%
发文量
41
期刊介绍: African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies.
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