• The Journal of Asian Finance, Economics and Business
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• 제8권1호
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• pp.71-79
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• 2021

This study investigates the capital structure policy among Indonesian public companies. Previous studies suggest that capital structure policy could follow either static or dynamic behavior. The sample data used in this study was companies in the manufacturing sector, divided into three sub-sectors: the basic and chemical industry, miscellaneous industry, and the consumer goods industry. This study uses panel data from 2010 to 2018, with the Generalized Least Square (GLS) method and compared whether the fixed effect model is better than the common effect model. The results show that the dynamic and non-linear model tests can explain the capital structure determinants than the static and linear models. The dynamic model shows that the capital structure of a certain year is influenced by the capital structure of the previous year. The findings indicate that the company performs some adjustments in its capital structure policy by referring to the previous debt ratio, which implies support to the trade-off theory (TOT). The study also shows that profitability, tangible assets, size, and age explain the variation of capital structure policy. The patterns on the dynamic and non-linear confirm that capital structure runs in a nonlinear pattern, based on the sector, company condition, and the dynamic environment.

• The Journal of Asian Finance, Economics and Business
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• 제8권1호
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• pp.45-52
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• 2021

The capital structure is one of the hot financial topics among researchers and scholars. Its importance comes from the fact that capital structure is closely related to companies' ability to meet different stakeholders' needs. A suitable capital structure will boost the business and create a competitive advantage in the context of fierce competition. Many companies choose an optimal debt level based on the trade-off between interest and debt costs. This study aimed to test the existence of trade-off theory in capital structure, the case of Vietnam's real estate companies, which are growing very fast recently. Instead of considering constant optimal leverage to test the trade-off model, we take advantage of the dynamic capital structure determined by growth opportunities, profitability, tax incentives, tangibility, liquidity, and firm size. The dynamic panel data regression was estimated by the system Generalized Method of Moment (Sys-GMM). The empirical evidence showed that real estate companies listed in the Vietnamese stock market might change their leverage toward a target capital structure determined by influential factors in a long-term perspective. In particular, the debt-to-asset ratio will change by approximately 14 percent, positively, in response to the difference between the current debt-to-asset ratio and the dynamic target debt-to-asset ratio.

• 아태비즈니스연구
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• 제15권3호
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• pp.417-430
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• 2024

Purpose - This paper investigates the asymmetric capital structure adjustment toward target leverage. Our study consistently estimates heterogeneous speeds of adjustment in different regimes reflecting heterogeneity in firm characteristics. Design/methodology/approach - We collect balanced panel data on Korean listed firms over the period 2005 - 2023. In order to capture non-linearities in the speed of capital structure adjustments, this paper employs the dynamic panel threshold model that allows endogeneity in regressors and threshold variables. Findings - Using firm characteristics as proxies for adjustment costs of deviation from and adjustment to target leverage, we find asymmetric effects on the speed of capital structure adjustments. Firms of large size, with high profitability, with large cash flow and with large investment adjust capital structure faster than those with the opposite characteristics. On the other hand, firms with high growth opportunities and with high risk move slowly toward the target leverage. Research implications or Originality - This paper provides new evidence of cross-sectional asymmetries in capital structure adjustments, which calls for cautions in sample-splitting in an arbitrary manner.

• The Journal of Asian Finance, Economics and Business
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• 제6권3호
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• pp.41-53
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• 2019

Building a target capital structure is one of the most important decisions in corporate financial management. The purpose of this article is to identify the determinants of capital structure and adjustment mechanism toward the target leverage. The partial adjustment model was applied on a sample of 306 non-financial companies listed on Vietnam stock exchange market during the period of 2008-2017. By the fixed effect model estimation method, the research results have discovered the factors of growth opportunities, firm size, tangible fixed assets and firm's unique characteristics have a positive effect on the target capital structure of enterprises. Besides, profitability and dividend payment have a negative effect on the target capital structure of enterprises. Accordingly, the research results show that the average adjustment speed toward target leverage of the firms is 90.03%. Research results also demonstrate firms have higher or lower debt ratio than the target debt ratio, capital surplus or capital deficit also have an impact on the adjustment rate toward the target capital structure. The research results are consistent with the Dynamic Trade-off Theory. From this result, this article has provided policy implications for non-financial companies listed on Vietnam's stock market in building a reasonable target capital structure according to operating timeline to maximize enterprise value.

• 재무관리연구
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• 제25권3호
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• pp.33-78
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• 2008

본 논문은 우리나라의 재벌집단 및 비재벌집단 그리고 대규모집단 및 소규모집단을 대상으로 자본구조의 최적목표자본구조로의 조정과정과 평균회귀현상 및 장기균형하의 최적자본구조의 결정요인에 대한 실증분석을 실시하였다. 본 실증분석 결과는 아래와 같다. 첫째, 우리나라 상장제조업의 기업들에서 최적목표부채비율이 존재하며 또한 장기자본구조로 부분적으로 조정하였고 최적자본구조로의 평균회귀현상을 보였다. 둘째, 조정속도를 추정한 결과 일반적으로 재벌집단보다 비재벌집단, 대기업집단보다 소기업집단의 조정속도가 빨랐다. 셋째, 우리나라의 경우 자본시장이 부채조정속도에 오히려 제약으로 작용하였다. 넷째, 우리나라 기업들은 과거 목표부채와의 괴리정도에 따라 목표자본구조로의 조정 행태가 나타났다. 다섯째, 우리나라 기업들은 1년에 실제 레버리지와 목표레버리지의 차이를 약 1/4정도 줄이고 있었다. 이러한 결과를 통하여 볼 때, 자본 조달순위이론 또는 시장적기이론이 기업의 자본조달 의사결정을 설명하는 중요한 이론이 아니라는 것을 제시하고 있다. 여섯째, 기업고유변수 및 자본시장변수를 사용하여 장기균형상태의 최적자본구조 결정요인을 분석한 결과 기업변수뿐만 아니라 자본시장변수도 유의적인 영향요인으로 작용하였다.

• The Journal of Asian Finance, Economics and Business
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• 제9권9호
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• pp.181-189
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• 2022

The current study examines the nexus between the capital structure (debt-equity) and firm value (Tobin's Q) by including profitability (alternatively Return on Assets (ROA) and Return on Equity (ROE)) as a moderator in the companies of Saudi Arabia. The study sample consists of 102 companies listed on Tadawul (the Saudi Arabian stock exchange) from different sectors of Saudi Arabia during the period 2013 to 2020. The study estimates pooled regression, panel regression with fixed and random effects, and dynamic panel regression models to report the results. The study results report that there is a negative and significant association between capital structure and firm value in model 1, while in models 2 and 3 there is a more negative and significant impact between the two study variables compared to model 1 after the inclusion of interaction variable, i.e. profitability in terms of ROA and ROE. The comparative result shows that the companies of Saudi Arabia hold more debt in their capital structure mix, hence evidencing a decrease in the firm value. The reported results also show that models 2 and 3 are better in explaining the impact of capital structure on firm value due to the interaction of profitability compared to model 1.

• 한국시스템다이내믹스연구
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• 제4권1호
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• pp.69-91
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• 2003

Using qualitative methods hinged on urban dynamics models, the paper addresses major issues concerned with new administrative capital construction. It tries to summarize the existing debates on new administrative capital construction and reinterpret diverse interacting factors in terms of reinforcing or balancing feedback structure. The paper suggests that understanding up on the dynamic mechanism imbedded in circular causal loop diagrams is the key to set up appropriate proposals and action plans for the new administrative capital, as they would reveal complicated linkages between the Capital Region and the rest, in addition to the urban dynamic of new administrative capital. In the same context, the paper can confirm similar features reflected in the relocation of capital functions at Canberra, Australia and Berlin, Germany. It has paid special attention to the fact that both Australian and German governments altogether stress the positive feedback loops as they have overcome unprecedented political confrontation among rival cities: Basically, they have encouraged gives-and-takes among major stake-holders. These research findings indicate that the future of new administrative capital construction depends on consensus buildings that can accommodate socio-economic and territorial changes between pros and cons. Although further researches and validations are needed, the system approach presented in this paper could assist Korean decision-makers in developing robust and responsive policy initiatives under uncertainties.

• 재무관리연구
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• 제24권1호
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• pp.109-147
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• 2007

코스닥 기업의 자본구조 결정요인을 연구하기 위하여 정태적 모형과 동태적 모형을 이용하였다. 레버리지와 기업특성변수들과의 관계, 자본구조의 조정속도, 목표자본구조의 존재여부 등을 실증분석 하였다. 정태적 모형의 결과에서 코스닥 기업의 수익성과 레버리지, 유동성과 레버리지는 음(-)의 유의적인 관계가 있어 정보비대칭으로 인하여 경영자는 자본비용이 낮은 내부자금조달을 선호한다는 자본조달우선순위이론과 부합하였다. 기업규모는 레버리지와 양(+)의 관계가 존재하여 대기업은 소기업보다 파산비용이 상대적으로 낮아 부채발행을 증가시킨다는 절충이론의 내용과 부합하였다. 코스닥 50기업에서 이익변동성은 레버리지와 양(+)의 유의적인 관계가 있었다. 이익변동성이 큰 기업은 부채의 대리인비용이 낮아 부채발행으로 자본조달을 증가시킨다는 주장을 지지하였다. 동태적 모형의 분석 결과 코스닥기업은 목표자본구조를 가지고 있는 것으로 나타났다. 최적자본구조로의 조정속도의 검증에서 코스닥 50기업의 조정속도가 코스닥 전체기업의 조정속도보다 느렸다. 이런 결과로 볼 때 코스닥 50기업은 은행과의 밀접한 관계 그리고 기업퇴출제도의 미비 등으로 목표자본구조로 부터의 이탈비용이 코스닥 전체기업보다는 전반적으로 낮음을 알 수 있었다.

• 산경연구논집
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• 제6권4호
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• pp.27-37
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• 2015

Purpose - This study first explores the possible dynamic relationship between ownership structure and firm performance using a panel of 4,900 Chinese-listed small- and medium-sized enterprises (SMEs) from 1999 to 2012. Research design, data, and methodology - We address this issue through a dynamic panel model using a method of moments (GMM) technique and dynamic simultaneous equations to alleviate the potential endogenous problem: unobserved heterogeneity, simultaneity, and dynamic endogeneity. Results - Under the framework of dynamic endogeneity, firm performance has a significantly positive influence on ownership, but not vice versa. Ownership and performance can be explained by their owned lagged values, respectively. Moreover, intertemporal endogeneity exists among ownership, investment, and performance through the application of system dynamic equations, which implies that the relationship among ownership structure, investment, and firm performance is dynamic by nature. Conclusions - This study also significantly contributes to a better understanding of dynamic corporate governance by providing further empirical evidence from the largest capital market in the Asian region.

• 국제학술발표논문집
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• The 5th International Conference on Construction Engineering and Project Management
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• pp.133-140
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• 2013

The purpose of this study is identifying the relationship among the business strategy, order receiving capability and leverage variables of a construction company using industry characteristic variables, in addition to the explanation variables used in the previous studies. The samples of this study were limited to the construction companies listed in Korean stock market. This study built multiple regression analysis models, which have been frequently used in traditional previous studies, in the explanation of company capital structure. Empirical analysis on Static Trade-off Theory and Pecking Order Theory was done by the built model. The study results suggested that the capital structure determination behavior of a construction company generally follows Static Trade-off Theory; however, profitability was found to follow Pecking Order Theory. The explanation variables used in the previous capital structure studies mostly produced significant results; however, the variables, which this study experimentally used, did not produce significant results. It is believed that it implies that additional studies are required in the selection of variables and study methodology. Consequently, a case that unconditionally supports a particular theory is scarce. It has been also found that a case can support both theories at the same time. Therefore, it is believed that development study methodology or introduction of new study methodology that can identify the dynamic characteristic of construction company capital structure formation is required.