Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence

This study evaluates the impact of firm and industry level determinants plus ownership concentration on the capital structure decisions in Indonesia. This study finds that growing firms seem to employ high level of debt, taking advantage of the tax shield as explained by the trade-off theory. Howeve...

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Main Author:	Haron, Razali
Format:	Article
Language:	English English English
Published:	USM Press 2018
Subjects:	HG Finance HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/66021/ http://irep.iium.edu.my/66021/ http://irep.iium.edu.my/66021/7/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants.pdf http://irep.iium.edu.my/66021/8/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20SCOPUS.pdf http://irep.iium.edu.my/66021/19/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20of%20capital%20structure_wos.pdf

id	iium-66021
recordtype	eprints
spelling	iium-660212019-01-24T04:08:19Z http://irep.iium.edu.my/66021/ Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence Haron, Razali HG Finance HG4001 Financial management. Business finance. Corporation finance. This study evaluates the impact of firm and industry level determinants plus ownership concentration on the capital structure decisions in Indonesia. This study finds that growing firms seem to employ high level of debt, taking advantage of the tax shield as explained by the trade-off theory. However, if the firms are operating in a highly dynamic environment they tend to take on less debt as to avoid bankruptcy risk. Known to be in a highly concentrated ownership structure, firms in Indonesia opt to 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 munificence environment follow the pecking order theory. The insights on the impact of industry characteristics are novel especially on emerging market thus fill the gap in the literature. USM Press 2018 Article PeerReviewed application/pdf en http://irep.iium.edu.my/66021/7/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants.pdf application/pdf en http://irep.iium.edu.my/66021/8/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20SCOPUS.pdf application/pdf en http://irep.iium.edu.my/66021/19/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20of%20capital%20structure_wos.pdf Haron, Razali (2018) Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence. Asian Academy of Management Journal of Accounting and Finance, 14 (1). pp. 127-151. ISSN 1823-4992 E-ISSN 2180-4192 http://web.usm.my/journal/aamjaf/aamjaf14012018/aamjaf14012018_6.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG Finance HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG Finance HG4001 Financial management. Business finance. Corporation finance. Haron, Razali Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
description	This study evaluates the impact of firm and industry level determinants plus ownership concentration on the capital structure decisions in Indonesia. This study finds that growing firms seem to employ high level of debt, taking advantage of the tax shield as explained by the trade-off theory. However, if the firms are operating in a highly dynamic environment they tend to take on less debt as to avoid bankruptcy risk. Known to be in a highly concentrated ownership structure, firms in Indonesia opt to 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 munificence environment follow the pecking order theory. The insights on the impact of industry characteristics are novel especially on emerging market thus fill the gap in the literature.
format	Article
author	Haron, Razali
author_facet	Haron, Razali
author_sort	Haron, Razali
title	Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
title_short	Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
title_full	Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
title_fullStr	Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
title_full_unstemmed	Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence
title_sort	firm level, ownership concentration and industry level determinants of capital structure in an emerging market: indonesia evidence
publisher	USM Press
publishDate	2018
url	http://irep.iium.edu.my/66021/ http://irep.iium.edu.my/66021/ http://irep.iium.edu.my/66021/7/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants.pdf http://irep.iium.edu.my/66021/8/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20SCOPUS.pdf http://irep.iium.edu.my/66021/19/66021%20Firm%20level%2C%20ownership%20concentration%20and%20industry%20level%20determinants%20of%20capital%20structure_wos.pdf
first_indexed	2023-09-18T21:33:42Z
last_indexed	2023-09-18T21:33:42Z
_version_	1777412679487455232

Firm level, ownership concentration and industry level determinants of capital structure in an emerging market: Indonesia evidence

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