Dynamic adjustment towards target capital structure: Thailand evidence

By employing panel data, the present study examines the dynamic aspects of capital structure of 269 non-financial listed firms in Thailand from 2000 to 2009. This is a relatively new area in finance literature. The present study investigates the existence of target capital structure, speed of adj...

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Main Authors:	Haron, Razali, Ibrahim, Khairunisah, Mat Nor, Fauzias, Ibrahim , Izani
Format:	Article
Language:	English English
Published:	Universiti Kebangsaan Malaysia 2013
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/33932/ http://irep.iium.edu.my/33932/ http://irep.iium.edu.my/33932/1/dynamic_adjustment_towards_target_capital_structure_thailand_evidence.pdf http://irep.iium.edu.my/33932/4/Razali_capital_structure_thailand_evidencePub.pdf

id	iium-33932
recordtype	eprints
spelling	iium-339322014-05-24T18:04:13Z http://irep.iium.edu.my/33932/ Dynamic adjustment towards target capital structure: Thailand evidence Haron, Razali Ibrahim, Khairunisah Mat Nor, Fauzias Ibrahim , Izani HG4001 Financial management. Business finance. Corporation finance. By employing panel data, the present study examines the dynamic aspects of capital structure of 269 non-financial listed firms in Thailand from 2000 to 2009. This is a relatively new area in finance literature. The present study investigates the existence of target capital structure, speed of adjustment and factors affecting the speed of adjustment. The analyses are conducted using the dynamic Partial Adjustment Model (PAM) and estimated based on the Generalized Method of Moments. The results indicate the existence of target capital structure and firms undergone adjustment processes to be at their target capital structure from time to time with a considerably rapid speed of adjustment, consistent with the dynamic trade-off theory. Firms in Thailand are found to be under-adjusting, being below the required adjustment to be at the target within a year. Strong evidence exists that indicates that firm specific factors significantly influence speed of adjustment for firms in Thailand, such as distance from target, size of firm and profitability. Universiti Kebangsaan Malaysia 2013-12-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/33932/1/dynamic_adjustment_towards_target_capital_structure_thailand_evidence.pdf application/pdf en http://irep.iium.edu.my/33932/4/Razali_capital_structure_thailand_evidencePub.pdf Haron, Razali and Ibrahim, Khairunisah and Mat Nor, Fauzias and Ibrahim , Izani (2013) Dynamic adjustment towards target capital structure: Thailand evidence. Jurnal Pengurusan, 39 (1). pp. 73-82. ISSN 0127-2713 (In Press) http://ejournals.ukm.my/pengurusan/article/view/4986
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Ibrahim, Khairunisah Mat Nor, Fauzias Ibrahim , Izani Dynamic adjustment towards target capital structure: Thailand evidence
description	By employing panel data, the present study examines the dynamic aspects of capital structure of 269 non-financial listed firms in Thailand from 2000 to 2009. This is a relatively new area in finance literature. The present study investigates the existence of target capital structure, speed of adjustment and factors affecting the speed of adjustment. The analyses are conducted using the dynamic Partial Adjustment Model (PAM) and estimated based on the Generalized Method of Moments. The results indicate the existence of target capital structure and firms undergone adjustment processes to be at their target capital structure from time to time with a considerably rapid speed of adjustment, consistent with the dynamic trade-off theory. Firms in Thailand are found to be under-adjusting, being below the required adjustment to be at the target within a year. Strong evidence exists that indicates that firm specific factors significantly influence speed of adjustment for firms in Thailand, such as distance from target, size of firm and profitability.
format	Article
author	Haron, Razali Ibrahim, Khairunisah Mat Nor, Fauzias Ibrahim , Izani
author_facet	Haron, Razali Ibrahim, Khairunisah Mat Nor, Fauzias Ibrahim , Izani
author_sort	Haron, Razali
title	Dynamic adjustment towards target capital structure: Thailand evidence
title_short	Dynamic adjustment towards target capital structure: Thailand evidence
title_full	Dynamic adjustment towards target capital structure: Thailand evidence
title_fullStr	Dynamic adjustment towards target capital structure: Thailand evidence
title_full_unstemmed	Dynamic adjustment towards target capital structure: Thailand evidence
title_sort	dynamic adjustment towards target capital structure: thailand evidence
publisher	Universiti Kebangsaan Malaysia
publishDate	2013
url	http://irep.iium.edu.my/33932/ http://irep.iium.edu.my/33932/ http://irep.iium.edu.my/33932/1/dynamic_adjustment_towards_target_capital_structure_thailand_evidence.pdf http://irep.iium.edu.my/33932/4/Razali_capital_structure_thailand_evidencePub.pdf
first_indexed	2023-09-18T20:48:59Z
last_indexed	2023-09-18T20:48:59Z
_version_	1777409866444308480

Dynamic adjustment towards target capital structure: Thailand evidence

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