Credit supply and corporate capital structure: Evidence from Japan

Voutsinas, Konstantinos; Werner, Richard A.

doi:10.1016/j.irfa.2011.05.002

Cited by 46 publications

(48 citation statements)

References 74 publications

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“…Many earlier studies argue that credit supply conditions are an important factor in firms' financing decisions. Voutsinas and Werner (2011) find that extreme credit supply fluctuations in Japan (asset bubble burst in 1989 and banking crises in 1998) had a significant impact on Japanese firms' capital structure. They find that a decrease in the supply of credit will affect negatively firm's leverage ratios.…”

Section: Determinants Of Capital Structurementioning

confidence: 95%

Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Trinh¹,

Phuong²

2015

International Journal of Financial Research

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This paper investigates effects of financial crisis on capital structure of listed firms in Vietnam. Regression models on the relation between the leverage and firm size, growth, profitability, tangibility, together with crisis dummies is built based on a sample of 265 firms listed on HNX and HOSE for the period of 2006-2013. The empirical result indicates that firm size, profitability, and tangibility have statistically significant impacts on capital structure. The growth is not statistically significant in explaining the variance of the leverage. The study result also reveals that capital structure of Vietnamese listed firms has not changed significantly under the financial crisis.

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Section: Determinants Of Capital Structurementioning

confidence: 95%

Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Trinh¹,

Phuong²

2015

International Journal of Financial Research

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“…7, No. 3;2015 In this context, a few studies show there is a direct link between the portion of tangible assets and leverage consisting with the Pecking Order Theory (Michaelas et al, 1999;Amidu, 2007 Voutsinas and Werner (2011) have adopted the most ubiquitous means to measure tangibility as the ratio of fixed assets to total assets. In this study, the calculation works the same way.…”

Section: Tangibilitymentioning

confidence: 99%

Does Asymmetry of Information Drive Banks’ Capital Structure? Empirical Evidence from Jordan

Alkhazaleh¹,

Almsafir²

2015

IJEF

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In search of the applicability of the capital structure theory (Pecking Order Theory) this study seek to penetrate into the most important factors on a bank's capital structure using panel data derived from 14 Jordanian banks quoted on the Amman Stock Exchange of 2013 over the time span of 15 years (1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013). The feasible generalised least squareis used in this study as the analysis model and Size serves to be a moderator variable. The results have demonstrated that out of three variables, tow (dividends and tangibility) are significantly linked with leverage, whereas the remaining is insignificantly associated with leverage. It is indicated that dividends and tangibility appear to function as the determinants of capital structure. The dividend has a negative effect on capital structure. It implies that although banks favor to payout dividends to shareholders, less debt capital is used. Tangibility affects capital structure positively. The greater tangibility necessitates the use of more debt in capital structure to fund all the activities. Bank size does not moderate the effects of growth, dividends and tangibility on the capital structure. It also appears that this study shows evidence in Jordan banks relatively and somewhat complies with the pecking order theory. The findings are of useful for both investors and managers.

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“…1 equals to 1, while 2 is the ratio of the standard deviation of the stock price index over the standard deviation of the house price index. Alternatively, Voutsinas and Werner (2011a) indicate the boom and the burst phase in their study based on the trend of lending growth rate in Japan over the 1980-1999 periods. The dummy variable equals 1 over the boom period (1980)(1981)(1982)(1983)(1984)(1985)(1986)(1987)(1988)(1989), and 0 during the burst period (1990)(1991)(1992)(1993)(1994)(1995)(1996)(1997)(1998)(1999).…”

Section: Data and Variablesmentioning

confidence: 99%

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

Mamatzakis

Bermpei

2014

International Review of Financial Analysis

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This paper examines factors that affect the performance of investment banks in the G7 and Switzerland. In particular, we focus on the role of risk, liquidity and investment banking fees. Panel analysis shows that those variables significantly impact upon performance as derived from stochastic frontier analysis (SFA). Given our sample also comprises the financial crisis, we further test for regimes switches using dynamic panel threshold analysis. Results show different underlying regimes, in particular over the financial crisis. In addition, a strong positive effect of Z-Score on performance for banks in the regime of low default risk is reported, whilst fee-income ratio has also a positive impact for banks with low level of fees. On the other hand, liquidity exerts a negative impact. Notably, there is a clear trend of mobility of banks across the two identified threshold regimes with regards to risk a year before the financial crisis. Our results provide evidence that recent regulation reforms regarding capital adequacy and liquidity requirements are on the right track and could enhance performance.

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Credit supply and corporate capital structure: Evidence from Japan

Cited by 46 publications

References 74 publications

Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Effects of Financial Crisis on Capital Structure of Listed Firms in Vietnam

Does Asymmetry of Information Drive Banks’ Capital Structure? Empirical Evidence from Jordan

What drives investment bank performance? The role of risk, liquidity and fees prior to and during the crisis

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