Macroeconomic conditions and capital structure over the business cycle: Further evidence in the context of Taiwan

Emerging Markets Finance and Trade

Volumn 48, Issue , 2012, Pages 141-156

  Yeh, Hsien Hung ^a   Roca, Eduardo ^b  

^a NATIONAL PINGTUNG UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

^b GRIFFITH UNIVERSITY   (Australia)

Author keywords

capital structure; macroeconomic conditions; Taiwan

Indexed keywords

EID: 84905039858     PISSN: 1540496X     EISSN: 15580938     Source Type: Journal    
DOI: 10.2753/REE1540-496X4805S309     Document Type: Conference Paper

References (35)

1. Akimov, A., and B. Dollery. 2008. "Financial System Reform in Kazakhstan from 1993 to 2006 and Its Socioeconomic Effects." Emerging Markets Finance and Trade 44, no. 3: 81-97.
2. Arellano, M., and S. Bond. 1991. "Some Tests of Specifcation for Panel Data: Monte Carlo Evidence and an Application to Employment Equations." Review of Economic Studies 50, no. 2: 277-297.
3. Baltagi, B.H. 2008. Econometric Analysis of Panel Data. New York: John Wiley & Sons.
4. Boyd, J., and B. Smith. 1996. "The Coevolution of the Real and Financial Sectors in the Growth Process." World Bank Economic Review 10, no. 2: 371-396.
5. Bradley, M.; G.A. Jarrell; and E.H. Kim. 1984. "On the Existence of an Optimal Capital Structure: Theory and Evidence." Journal of Finance 39, no. 3: 857-878.
6. Chang, X., and S. Dasgupta. 2009. "Target Behavior and Financing: How Conclusive Is the Evidence?" Journal of Finance 64, no. 4: 1767-1796.
7. Chen, J.J. 2004. "Determinants of Capital Structure of Chinese-Listed Companies." Journal of Business Research 57, no. 12: 1341-1351.
8. Chu, P.Y.; S. Wu; and S.F. Chiou. 1992. "The Determinants of Corporate Capital Structure Choice: Taiwan Evidence." Journal of Management Science 9, no. 2: 159-177 (in Chinese).
9. Chu, W. 1994. "Import Substitution and Export-Led Growth: A Study of Taiwan's Petrochemical Industry." World Development 22, no. 5: 781.
10. ---. 2003. Taiwan's Economy Under Globalization. Taipei: Ton-San (in Chinese).
11. Council for Economic Planning and Development (CEPD). 2009. Taiwan Business Indicators. Taipei.
12. Crnigoj, M., and D. Mramor. 2009. "Determinants of Capital Structure in Emerging European Economies: Evidence from Slovenian Firms." Emerging Markets Finance & Trade 45, no. 1 (January-February): 72-89.
13. Downs, T.W. 1993. "Corporate Leverage and Nondebt Tax Shields: Evidence on Crowding-Out." Financial Review 28, no. 4: 549-583.
14. Feidakis, A., and A. Rovolis. 2007. "Capital Structure Choice in European Union: Evidence from the Construction Industry." Applied Financial Economics 17, no. 12: 989-1002.
15. Flannery, M.J., and K.P. Rangan. 2006. "Partial Adjustment Toward Target Capital Structures." Journal of Financial Economics 79, no. 3: 469-506.
16. Glen, J., and A. Singh. 2004. "Comparing Capital Structures and Rates of Return in Developed and Emerging Markets." Emerging Markets Review 5, no. 2: 161-192.
17. Hackbarth, D.; J. Miao; and E. Morellec. 2006. "Capital Structure, Credit Risk, and Macroeco-nomic Conditions." Journal of Financial Economics 82, no. 3: 519-550.
18. Harris, M., and A. Raviv. 1991. "The Theory of Capital Structure." Journal of Finance 46, no. 1: 297-355.
19. Hazak, A. 2009. "Companies' Financial Decisions Under the Distributed Proft Taxation Regime of Estonia." Emerging Markets Finance and Trade 45, no. 4: 4-12.
20. Hovakimian, A., and G. Li. 2011. "In Search of Conclusive Evidence: How to Test for Adjustment to Target Capital Structure." Journal of Corporate Finance 17, no. 1: 33-44.
21. Jensen, M.C. 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." American Economic Review 76, no. 2: 323-329.
22. Kim, W.S., and E.H. Sorensen. 1986. "Evidence on the Impact of the Agency Costs of Debt on Corporate Debt Policy." Journal of Financial and Quantitative Analysis 21, no. 2: 131-144.
23. Korajczyk, R.A., and A. Levy. 2003. "Capital Structure Choice: Macroeconomic Conditions and Financial Constraints." Journal of Financial Economics 68, no. 1: 75-109.
24. Kuo, H., and L. Wang. 2005. "The Effect of the Degree of Internationalization on Capital Structure for Listed Multinational Corporations in Taiwan During the Asian Financial Crisis." Review of Pacifc Basin Financial Markets and Policies 8, no. 3: 447-466.
25. Levy, A., and C. Hennessy. 2007. "Why Does Capital Structure Choice Vary with Macroeco-nomic Conditions?" Journal of Monetary Economics 54, no. 6: 1545-1564.
26. Miller, M.H. 1977. "Debt and Taxes." Journal of Finance 32, no. 2: 261-275.
27. Modigliani, F., and M.H. Miller. 1958. "The Cost of Capital, Corporation Finance and the Theory of Investment." American Economic Review 48, no. 3: 261-297.
28. Nieh, C.; H. Yau; and W. Liu. 2008. "Investigation of Target Capital Structure for Electronic Listed Firms in Taiwan." Emerging Markets Finance and Trade 44, no. 4: 75-87.
29. Ozkan, A. 2001. "Determinants of Capital Structure and Adjustment to Long Run Target: Evidence from UK Company Panel Data." Journal of Business Finance & Accounting 28, nos. 1-2: 175-198.
30. Qian, Y.; Y. Tian; and T.S. Wirjanto. 2009. "Do Chinese Publicly Listed Companies Adjust Their Capital Structure Toward a Target Level?" China Economic Review 20, no. 4: 662-676.
31. Stata. 2009. Longitudinal-Data/Panel-Data Reference Manual Release 11. College Station, TX: Stata Press.
32. Titman, S., and R. Wessels. 1988. "The Determinants of Capital Structure Choice." Journal of Finance 43, no. 1: 1-19.
33. Wald, J.K. 1999. "How Firm Characteristics Affect Capital Structure: An International Comparison." Journal of Financial Research 22, no. 2: 161-187.
34. Windmeijer, F. 2005. "A Finite Sample Correction for the Variance of Linear Effcient Two-Step GMM Estimators." Journal of Econometrics 126, no. 1: 25-51.
35. Wiwattanakantang, Y. 1999. "An Empirical Study on the Determinants of the Capital Structure of Thai Firms." Pacifc-Basin Finance Journal 7, nos. 3-4: 371-403.