The Determinants of Capital Structure: Evidence from the Asia Pacific Region *

By Rataporn Deesomsak, Krishna Paudyal, G. Pescetto. 2004

794 citations recorded by the source corpus.

The paper contributes to the capital structure literature by investigating the determinants of capital structure of firms operating in the Asia Pacific region, in four countries with different legal, financial and institutional environments, namely Thailand, Malaysia, Singapore and Australia. The results suggest that the capital structure decision of firms is influenced by the environment in which they operate, as well as firm-specific factors identified in the extant literature. The financial crisis of 1997 is also found to have had a significant but diverse impact on firm’s capital structure decision across the region.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/5e442e3d5c2fdeaaf7757555f2e7486b9c0074f0

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Citations in the corpus

Upper Echelon Theory Revisited: The Relationship between CEO Personal Characteristics and Financial Leverage Decision (2015, background): “Studies on leverage decision have been conducted in different countries: United States (Titman and Wessels 1988); Asia-Pacific region (Deesomsak et al 2004); Latin American firms (Céspedes et al 2010).”
Determinants of capital structure: an empirical study of firms in Iran (2015, positive): “These negative relationships indicate that firms with a higher liquidity ratio will borrow less (Deesomsak et al., 2004).”
Capital Structure Around the World: The Roles of Firm- and Country-Specific Determinants (2007, positive): “If the firm-specific coefficients do not differ significantly across countries, we can apply one model for all firms in the world, similar to prior studies (Booth et al., 2001; Deesomsak et al., 2004; Song and Philippatos, 2004; and Fan et al, 2006).”
Determinants of Capital Structure Empirical Evidence from Financial Services Listed Firms in China (2012, neutral): “Despite this attempt, there has been limited work done on the Asian region mainly because of the constraints on corporate financial data in the region (Fan and Wong, 2002; Deesomsak et al., 2004; Driffield et al., 2007).”
Determinants of capital structure in emerging markets: evidence from Vietnam (2017, background): “Deesomsak et al. (2004) investigate the determinants of capital structure in Asia Pacific region using data of Thailand, Malaysia, Singapore and Australia.”
Capital Structure and Firm Performance: Evidence from Malaysian Listed Companies (2012, background): “In addition, Wiwattanakantang (1999) reported a negative relation between book and market leverage and ROA from 270 Thai firms.”
Capital structure determinants: an empirical study of French companies in the wine industry (2008, background): “Non-debt tax shield like tax deduction for depreciation and investment tax credits are substitutes for the tax benefit of debt financing ( DeAngelo and Masulis, 1980 ).”
Determinants of capital structure: evidence from Turkish lodging companies. (2009, result): “Although the previous empirical studies found a positive relationship between firm size and debt level (Chen and Hammes, 1997; Dalbor and Upneja, 2002; Daskalakis and Psillaki, 2008; Deesomsak et al., 2004; Fama and French, 2002; Feikadis and Rovolis, 2007; Gaud et al., 2005; Huang and Song, 2006; P”
Determinants of capital structure: An empirical study of firms in manufacturing industry of Pakistan (2011, background): “Deesomsak et al. (2004), Zou and Xiao (2006) and Eriotis et al.”
Determinants of capital structure: evidence from a major developing economy (2014, positive): “Many studies including Deesomsak et al. (2004) and de Jong et al. (2008) show that the health and stability of the economic environment exert considerable effect on the firms’ capital structures.”