Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/194747 
Year of Publication: 
2017
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 5 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] Abingdon [Year:] 2017 [Pages:] 1-34
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
We investigate the determinants of capital structure of public listed companies on Bursa Malaysia, Singapore Stock Exchange and Thailand Stock Exchange from 2004 to 2013. We also investigate how firm-specific factors such as profitability, firm size, tangibility of assets and depreciation to total assets along with the macroeconomic factor such as inflation influence the capital structure decisions of public listed companies. Our findings support capital structure theories such as trade-off and pecking order theories and are consistent with prior empirical studies. We find all the factors examined in this study provide strong explanatory power for the capital structure decisions of the sampled public listed companies across all three countries. We find profitability has a significant negative influence on capital structure for Malaysia and Singapore but insignificant for Thailand. While, firm size has a significant positive influence on capital structure for all countries. Our findings also suggest that tangibility of assets has a significant positive influence on capital structure for Malaysia and Singapore while insignificant for Thailand. The depreciation to total assets indicates a negative influence on capital structure across all the three countries. Our study should be of interest to top managers who wish to have optimal capital structure to improve the firm performance.
Subjects: 
capital structure
profitability
firm size
net tangible asset
depreciation to asset
inflation
JEL: 
G31
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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