Capital structure of non-public listed firms in the last financial crisis: a cross country and cross industry study

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2017-07-13
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en
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This study examines the role of the last financial crisis on the firm-specific determinants and different sectors of capital structure on firms in the US and Thailand. Specifically, I investigate whether there is a change in the capital structure during the last financial crisis. This study encompasses two countries -- US and Thailand -- for the period of 2007-2016. I constructed a database with 3989 (non-) public listed firms. The regression results show that (1) firms have an increase in their leverage during the last financial crisis; (2) the average coefficient of the firm-specific characteristics is quite small in magnitude and vary widely across the firms in US and Thailand; (3) inter-industry effects are important in explaining firms’ capital structure. Industries exhibit different levels of leverage; (4) firm leverage, as measured by the long-term debt value divided by total assets, is statistically significant positively related to tangibility, firm size, and is significant negatively related to profitability and liquidity; (5) tax has no significant relationship with leverage; (6) cross-country equality of firm-level characteristics is not found. The developing country is more likely to meet the hypothetical requirements needed for the conventional theories in capital structure. In general, these results are broadly supportive of the pecking-order theory and inconsistent
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Faculteit der Managementwetenschappen
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