Characteristics of Capital Structure Differences in Emerging Market Firms
Duett, Edwin H.
White, Larry R.
Grimes, Paul W.
Hardin, William G. III
Rogers, Kevin E.
Date of Degree
Original embargo terms
MSU Only Indefinitely
Dissertation - Open Access
Doctor of Philosophy
College of Business and Industry
Department of Finance and Economics
For the past forty-two years, the debate has raged over the optimal use of debt in the firm?s capital structure. Numerous studies have looked at the factors that affect a firm?s capital structure, in both the domestic and foreign markets. Many of these studies have focused their attention on the U.S. and developed countries. Similarities and differences between the U.S. and other industrialized countries have been explored and noted. The objective of this study is to determine if there are similarities between the factors that determine capital structure in emerging markets and those of more developed nations. Are the determining factors different for emerging markets and what are possible explanations for these difference? This study attempts to determine if factors that have been shown to influence the capital structure of developed nations are, in fact, influential in emerging market. The study also incorporates additional factors that may be particular to emerging markets to determine if they have an impact of the firm?s choice of capital structure. This study finds that capital structure determinants are more portable to firms in Asian markets than in Latin American markets. The study also finds that the means by which debt is measure does, in fact, have a bearing on the significance of the explanatory variables.
Foster, Mark David, "Characteristics of Capital Structure Differences in Emerging Market Firms" (2004). Theses and Dissertations MSU. 990.