Corporate Leverage in Emerging Asia

30 Pages Posted: 29 Apr 2017

See all articles by Vidhan K. Goyal

Vidhan K. Goyal

Hong Kong University of Science & Technology (HKUST) - Department of Finance

Frank Packer

Bank for International Settlements (BIS)

Date Written: March 2017

Abstract

This paper examines the leverage of firms of seven economies in emerging Asia – Hong Kong SAR, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand – between 1991 and 2015. For the sample as a whole, neither the mean nor median, nor the upper tails of the leverage distribution show any upward shift in recent years. Corporate leverage appears quite stable across most jurisdictions, but not all. Standard firm characteristics such as asset tangibility and size explain leverage differences across the whole sample and within jurisdiction. Factors that help to overcome informational asymmetries may be less important in jurisdictions with stronger institutions.

Full Publication: Financial Systems and the Real Economy

Keywords: corporate finance, capital structure, leverage

JEL Classification: G30, G32

Suggested Citation

Goyal, Vidhan K. and Packer, Frank, Corporate Leverage in Emerging Asia (March 2017). BIS Paper No. 91c. Available at SSRN: https://ssrn.com/abstract=2945067

Vidhan K. Goyal (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Finance ( email )

Clear Water Bay, Kowloon
Hong Kong
852-2358-7678 (Phone)
852-2358-1749 (Fax)

HOME PAGE: http://www.vidhangoyal.com

Frank Packer

Bank for International Settlements (BIS) ( email )

CH-4002 Basel, Basel-Stadt
Switzerland
4161 280 8449 (Phone)

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