Purpose – The purpose of this study is to examine the relationship between agency factors and the debt level of Ghanaian small and medium enterprises (SMEs). Design/methodology/approach – Generalized least squares model is used to estimate the regression equation. Findings – The results indicate that managerial ownership is negatively related to debt level. This suggests that SMEs with insider shareholders may prefer lower leverage to reduce the risk of insolvency. The results also show that SMEs with many shareholders are less likely to employ debt finance. Firms with many shareholders are not likely to entertain the fear of loss of control since the firm is seen as group‐owned. Originality/value – The findings of this study generally suggest that managerial ownership is important in explaining the capital structure of Ghanaian SMEs. This study extends our understanding of the agency theory and the capital structure of SMEs from the Ghanaian context.
Review of Accounting and Finance – Emerald Publishing
Published: May 16, 2008
Keywords: Debts; Capital structure; Ghana; Small to medium‐sized enterprises; Owner‐managers; Family firms
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera