Policy initiatives and Örmsíaccess to external finance: Evidence from a panel of emerging Asian economies

Udichibarna Bose, Ronald McDonald and Serafeim Tsoukas
Authors registered in the RePEc Author Service: Ronald MacDonald

Working Papers from Business School - Economics, University of Glasgow

Abstract: This paper analyses the impact of policy initiatives co-ordinated by Asian national govern- ments on firms composition of external finance. Using a unique firm-level database of eight Asian countries- Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Tai- wan and Thailand over the period of 1996-2012 and a difference-in-differences approach, the results show a significant response of the debt composition to the policy change. We find that firms increased their uptake of long-term debt, while decreased their short-term debt. We also document that less risky and more profitable firms are more significantly affected by the policy change than riskier and less profitable firms. Finally, we show that the improved access to external finance after the policy initiative helped firms to raise their investment spending.

Keywords: External finance; Emerging Asia; Policy initiatives; Financial constraints (search for similar items in EconPapers)
JEL-codes: C23 E44 G15 G32 O16 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-cfn, nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2016_18

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