Since 2014
THE DEBT-EQUITY CHOICE OF JAPANESE FIRMS
International Journal of Business and Society
View Archive Info| Field | Value | |
| Title |
THE DEBT-EQUITY CHOICE OF JAPANESE FIRMS
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| Creator |
Chong, Terence Tai-Leung
Law, Daniel Tak-Yan Yao, Feng |
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| Description |
Prior studies on the debt-equity choice of firms focus on capital market oriented economies. This paper examines whether firms in Japan, the world’s largest bank-oriented economy, adjust their debt-equity choice towards the target. We find that the leverage ratios of Japanese firms do adjust slowly towards their target levels. The adjustment speed has dwindled after the Asian Financial Crisis. In contrast to existing literature, we show that an increase in tangible assets reduces the leverage ratio of firms in Japan. It is also found that the effect of financial deficit is persistent while the market timing effect is not.Keywords: Debt-equity Choice; Pecking Order Theory; Market Timing Theory; Trade-Off Theory.
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| Publisher |
Faculty of Economics and Business, UNIMAS
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| Date |
2017-11-20
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://publisher.unimas.my/ojs/index.php/IJBS/article/view/519
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| Source |
International Journal of Business and Society; Vol 17 No 2 (2016): International Journal of Business and Society
1511-6670 |
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| Language |
eng
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| Relation |
http://publisher.unimas.my/ojs/index.php/IJBS/article/view/519/464
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| Rights |
Copyright (c) 2017 International Journal of Business and Society
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