Dynamic Capital Structure Under Political Patronage: A Pre and Post Crisis Analysis of Malaysia

2011 ◽  
Author(s):  
Muhammed Shahid Ebrahim ◽  
Sourafel Girma ◽  
M. Eskandar Shah
Keyword(s):  
Capital Structure ◽  
Political Patronage ◽  
Dynamic Capital Structure

scholarly journals Dynamic capital structure and political patronage: The case of Malaysia

2014 ◽  
Vol 31 ◽  
pp. 117-128 ◽  
Author(s):  
M. Shahid Ebrahim ◽  
Sourafel Girma ◽  
M. Eskandar Shah ◽  
Jonathan Williams
Keyword(s):  
Capital Structure ◽  
Political Patronage ◽  
Dynamic Capital Structure

scholarly journals Determinan Leverage Optimal Di Bursa Efek Indonesia

2020 ◽  
Vol 17 (1) ◽  
pp. 94-107
Author(s):  
Purwanto Widodo ◽  
Juardi Juardi
Keyword(s):  
Capital Structure ◽  
Dynamic Models ◽  
Stock Exchange ◽  
Dynamic Panel Data ◽  
Method Of Moment ◽  
Manufacturing Companies ◽  
Macroeconomic Factors ◽  
Trade Off ◽  
Optimal Leverage ◽  
Dynamic Capital Structure

Research on capital structure, recently characterized by the use of dynamic capital structure. The use of dynamic capital structure basically wants to know the existence of optimal leverage as hypothesized by Trade-Off Theory and Speed off Adjustment (SOA) to optimal leverage. This research tries to overcome this problem, by using dynamic panel data by using company characteristics and macroeconomic factors. The use of General Method of Moment (GMM) to overcome the problem of econometrics due to the use of dynamic models. Samples taken from manufacturing companies listing on the Indonesia Stock Exchange 2009-2015. The inference model and the determinant behavior of capital structure can be explained by Trade-Off Theory and Pecking Order Theory. The variable characteristics of the company and macro economy are significant and are marked according to the hypothesis. The findings of this study include: the influence of profitability, size, tangibility, growth opportunity and business risk. In addition, on average companies in Indonesia can increase their debt to utilize tax shields

scholarly journals The influence of firm, industry and concentrated ownership on dynamic capital structure decision in emerging market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Razali Haron ◽  
Naji Mansour Nomran ◽  
Anwar Hasan Abdullah Othman ◽  
Maizaitulaidawati Md Husin ◽  
Ashurov Sharofiddin
Keyword(s):  
Capital Structure ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Dynamic Environment ◽  
Order Theory ◽  
Ownership Concentration ◽  
Content Type ◽  
Dynamic Panel Model ◽  
The Impact ◽  
Dynamic Capital Structure

Purpose This study aims to evaluate the impact of firm, industry level determinants and ownership concentration on the dynamic capital structure decision in Indonesia and analyses the governing theories. Design/methodology/approach This study uses the dynamic panel model of generalized method of moments-System (one-step and two-step) by using a panel data from 2000 to 2014 to examine the relationship between the determinants and leverage. The results are robust to the various definitions of leverage, heterogeneity, autocorrelation, multicollinearity and endogeneity concern. Findings Growing firms and firms operating in a highly concentrated industry use high level of debt, taking advantage of the tax shield (trade-off theory). However, if the firms are operating in a highly dynamic environment, they take on less debt as to avoid bankruptcy risk. Firms in Indonesia opt for debt financing perhaps to act as a controlling mechanism to mitigate agency conflicts that may exist between the large controlling shareholders and the minority. Aged and highly profitable firms with high tangible and intangible assets and liquidity level operating in a high dynamic environment follow the pecking order theory. Research limitations/implications This study does not perform each industry regression individually. All the industries are pooled together, as the main focus of this study is to examine the factors affecting leverage of firms in general without giving particular attention to individual industry. Originality/value The insights on the impact of ownership concentration and industry characteristics are novel especially on Indonesia, thus fill the gap in the literature.

scholarly journals RETHINKING DYNAMIC CAPITAL STRUCTURE MODELS WITH ROLL-OVER DEBT

2012 ◽  
Vol 24 (1) ◽  
pp. 66-96 ◽  
Author(s):  
Jean-Paul Décamps ◽  
Stéphane Villeneuve
Keyword(s):  
Capital Structure ◽  
Dynamic Capital Structure
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