Capital structure revisited Do crisis and competition matter in a Keiretsu corporate.pdf (1.49 MB)
Capital structure revisited. Do crisis and competition matter in a Keiretsu corporate structure?
journal contribution
posted on 2023-06-10, 03:31 authored by Albert Danso, Samuel FosuSamuel Fosu, Samuel Owusu-Agyei, Collins G Ntim, Emmanuel AdegbiteWe investigate firm-level determinants of capital structure using a large sample of 4,284 Japanese firms over a 19-year period (i.e., over 61,000 firm-year observations), a hitherto less examined sample for this purpose. We conduct our analysis and interpret our findings predominantly within the pecking order, the trade-off and the agency theoretical frameworks. We uncover three new findings. First, our evidence indicates that insights derived from the extant literature on capital structure are cross-national and are applicable in the context of Japan, despite the unique characteristics of Japanese firms. Second, financial crisis significantly impacts the relationship between leverage and firm-level determinants, particularly accentuating the effect of asset tangibility and growth. Third, product market competition significantly impacts the observed relationship between firm-level determinants and leverage. Our results are robust, controlling for the joint effects of competition and crisis.
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Publication status
- Published
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- Published version
Journal
International Journal of Finance and EconomicsISSN
1076-9307Publisher
WileyExternal DOI
Issue
4Volume
26Page range
5073-5092Department affiliated with
- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-05-11First Open Access (FOA) Date
2022-05-11First Compliant Deposit (FCD) Date
2022-05-11Usage metrics
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