Determinants of target capital structure: evidence on South East Asia countries

The purpose of this study is to identify the existence of target capital structure and to examine the determinants of target capital structure for selected countries in the South East Asia region using the dynamic framework. We analyse the impact of country specific determinants along with firm spec...

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Main Authors:	Mat Nor, Fauzias, Haron, Razali, Ibrahim, Khairunisah, Ibrahim , Izani, Alias, Norazlan
Format:	Article
Language:	English
Published:	World Business Institute, Australia 2011
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/10181/ http://irep.iium.edu.my/10181/ http://irep.iium.edu.my/10181/1/Determinants_of_Target_Capital_Structure-Evidence_on_South_East_Asia_Countries_2011.pdf

id	iium-10181
recordtype	eprints
spelling	iium-101812011-12-14T15:06:41Z http://irep.iium.edu.my/10181/ Determinants of target capital structure: evidence on South East Asia countries Mat Nor, Fauzias Haron, Razali Ibrahim, Khairunisah Ibrahim , Izani Alias, Norazlan HG4001 Financial management. Business finance. Corporation finance. The purpose of this study is to identify the existence of target capital structure and to examine the determinants of target capital structure for selected countries in the South East Asia region using the dynamic framework. We analyse the impact of country specific determinants along with firm specific determinants on the corporate structure decisions within the firms in the countries understudy. We find that the importance of firm specific determinants varies across countries for firms in the selected countries in the region. The introduction of country specific variables such as the level of stock market development, bond market development, economic growth, interest rates and country governance support and enhance these findings. The importance of country determinants also varies across countries understudy despite sharing some similarities. Our findings contribute to the existing literature by documenting strong evidence that firms in the selected countries do pursue target capital structure. Simultaneously, we also witness cases of inconsistencies regarding the impact of factors on capital structure in the countries understudy. To wrap up, we conclude that the capital structure decision is not only the product of the firm’s own characteristics but also the result of institutional environment and corporate governance in which the firm operates. World Business Institute, Australia 2011-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/10181/1/Determinants_of_Target_Capital_Structure-Evidence_on_South_East_Asia_Countries_2011.pdf Mat Nor, Fauzias and Haron, Razali and Ibrahim, Khairunisah and Ibrahim , Izani and Alias, Norazlan (2011) Determinants of target capital structure: evidence on South East Asia countries. Journal of Business and Policy Research, 6 (3). pp. 39-61. ISSN 1449-387x http://wbiaus.org/3.%20Fauzias.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Mat Nor, Fauzias Haron, Razali Ibrahim, Khairunisah Ibrahim , Izani Alias, Norazlan Determinants of target capital structure: evidence on South East Asia countries
description	The purpose of this study is to identify the existence of target capital structure and to examine the determinants of target capital structure for selected countries in the South East Asia region using the dynamic framework. We analyse the impact of country specific determinants along with firm specific determinants on the corporate structure decisions within the firms in the countries understudy. We find that the importance of firm specific determinants varies across countries for firms in the selected countries in the region. The introduction of country specific variables such as the level of stock market development, bond market development, economic growth, interest rates and country governance support and enhance these findings. The importance of country determinants also varies across countries understudy despite sharing some similarities. Our findings contribute to the existing literature by documenting strong evidence that firms in the selected countries do pursue target capital structure. Simultaneously, we also witness cases of inconsistencies regarding the impact of factors on capital structure in the countries understudy. To wrap up, we conclude that the capital structure decision is not only the product of the firm’s own characteristics but also the result of institutional environment and corporate governance in which the firm operates.
format	Article
author	Mat Nor, Fauzias Haron, Razali Ibrahim, Khairunisah Ibrahim , Izani Alias, Norazlan
author_facet	Mat Nor, Fauzias Haron, Razali Ibrahim, Khairunisah Ibrahim , Izani Alias, Norazlan
author_sort	Mat Nor, Fauzias
title	Determinants of target capital structure: evidence on South East Asia countries
title_short	Determinants of target capital structure: evidence on South East Asia countries
title_full	Determinants of target capital structure: evidence on South East Asia countries
title_fullStr	Determinants of target capital structure: evidence on South East Asia countries
title_full_unstemmed	Determinants of target capital structure: evidence on South East Asia countries
title_sort	determinants of target capital structure: evidence on south east asia countries
publisher	World Business Institute, Australia
publishDate	2011
url	http://irep.iium.edu.my/10181/ http://irep.iium.edu.my/10181/ http://irep.iium.edu.my/10181/1/Determinants_of_Target_Capital_Structure-Evidence_on_South_East_Asia_Countries_2011.pdf
first_indexed	2023-09-18T20:19:37Z
last_indexed	2023-09-18T20:19:37Z
_version_	1777408018645778432

Determinants of target capital structure: evidence on South East Asia countries

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