A Survey on Capital Structure Decisions of Hong Kong Firms

Dennis K. K. Fan and Raymond W. So
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Dennis K. K. Fan: Department of Finance, Chinese University of Hong Kong, Hong Kong, China
Raymond W. So: Department of Finance, Chinese University of Hong Kong, Hong Kong, China

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2000, vol. 03, issue 03, 347-365

Abstract: In this paper, the results of a survey on capital structure decisions of Hong Kong listed firms are reported. It is found that Hong Kong firms conformed more to the "pecking order" principle than a target long term debt-equity mix in their financing decisions. Financial managers' preferences over alternative capital raising instruments are also investigated. The degree of information asymmetry and firm size are found to have impacts on the ranking of some factors governing capital structure decisions. However, signaling motivation does not play a role in managers' financing decisions.

Keywords: capital structure; survey; Hong Kong (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S0219091500000194

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