The determinants of capital structure: evidence from the Asia Pacific region

Rataporn Deesomsak*, Krishna Paudyal, Gioia Pescetto

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

319 Citations (Scopus)

Abstract

The paper contributes to the capital structure literature by investigating the determinants of capital structure of firms operating in the Asia Pacific region, in four countries with different legal, financial and institutional environments, namely Thailand, Malaysia, Singapore and Australia. The results suggest that the capital structure decision of firms is influenced by the environment in which they operate, as well as firm-specific factors identified in the extant literature. The financial crisis of 1997 is also found to have had a significant but diverse impact on firm's capital structure decision across the region.

Original languageEnglish
Pages (from-to)387-405
Number of pages19
JournalJournal of Multinational Financial Management
Volume14
Issue number4-5
DOIs
Publication statusPublished - 31 Dec 2004

Keywords

  • Asia Pacific region
  • capital structure
  • corporate governance
  • financial crisis
  • leverage

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