An Empirical Study on the Determinants of the Capital Structure of Thai Firms

Posted: 17 Jul 2001

See all articles by Yupana Wiwattanakantang

Yupana Wiwattanakantang

National University of Singapore - Department of Finance

Abstract

This study presents empirical evidence on the determinants of the capital structure of non-financial firms in 1996. Empirical results imply that the tax effect, the signaling effect and the agency costs play a role in financing decisions. Ownership structure also effects financial policy. Single-family owned firms have significantly higher debt level. Only in single-family owned firms does managerial shareholdings have consistently positive influence on firm leverage. Finally large shareholders affect the debt ratio negatively, implying that they may monitor the management.

Keywords: Capital structure; Ownership structure; Corporate governance; Agency costs; Thailand

JEL Classification: G32

Suggested Citation

Wiwattanakantang, Yupana, An Empirical Study on the Determinants of the Capital Structure of Thai Firms. Available at SSRN: https://ssrn.com/abstract=271357

Yupana Wiwattanakantang (Contact Author)

National University of Singapore - Department of Finance ( email )

Business School
Mochtar Riady Building #7-44, 15 Kent Ridge Dri
Singapore, 117592
Singapore
65-6516-1912 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
3,306
PlumX Metrics