Evolution of Capital Structure in East Asia: Corporate Inertia or Endeavours?

Sarmistha Pal and Nigel Driffield

Working Papers from eSocialSciences

Abstract: The present paper examines the capital structure adjustment dynamics of listed non-financial corporations in seven East Asian countries during 1994-2002. Compared to firms in the least affected countries, average leverages were much higher among firms in the worst affected countries while the average speeds of adjustment were lower. This general ranking is robust to various alternative specifications and sample selections. We argue that this pattern is closely linked to weaknesses in regulatory environment and lack of access to alternative sources of finance in the worst affected countries.

Keywords: capital structure; financial corporations; East Asian countries; leverages; environment; finance; capital structure dynamics; partial adjustment models; firm- and time-varying speed; generalised methods of moments; inertia and endeavours (search for similar items in EconPapers)
Date: 2016-01
Note: Institutional Papers
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Related works:
Journal Article: Evolution of capital structure in east Asia—corporate inertia or endeavours? (2010)
Working Paper: Evolution of Capital Strcture in East Asia: Corporate Inertia or Endeavours? (2008)
Working Paper: Evolution of Capital Structure in East Asia: Corporate Inertia or Endeavours? (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:8465

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