Equity Ownership and Capital Structure: Evidence from the Firms in the Nikkei 225 Stock Index

Chikashi Tsuji

Abstract


In this paper, we research the linkage between the equity ownership and debt ratios as to the corporations in the Nikkei 225 stock index in Japan. The findings with regard to the Nikkei 225 firms from our investigations are as follows. First, we clarify that the relations between debt ratios and the shareholding ratios of foreign companies are strongly negative. Second, we also reveal that the relations between debt ratios and the shareholding ratios of the domestic non-financial corporations are strongly positive. Third, we further derive that the relations between debt ratios and the shareholding ratios of the 10 largest shareholders are generally negative.


Full Text: PDF DOI: 10.5539/ijef.v6n3p55

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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