Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies

Udichibarna Bose, Ronald MacDonald and Serafeim Tsoukas

Journal of Corporate Finance, 2019, vol. 59, issue C, 162-184

Abstract: This paper analyses the impact of policy initiatives co-ordinated by Asian national governments on firms' composition of external finance. Using a unique firm-level database of eight Asian countries- Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan 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: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S092911991630133X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies (2015)
Working Paper: Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies (2015)
Working Paper: Policy initiatives and firms access to external finance: Evidence from a panel of emerging Asian economies (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:59:y:2019:i:c:p:162-184

DOI: 10.1016/j.jcorpfin.2016.09.008

Access Statistics for this article

Journal of Corporate Finance is currently edited by A. Poulsen and J. Netter

More articles in Journal of Corporate Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().