Title

Characteristics of Capital Structure Differences in Emerging Market Firms

Advisor

Duett, Edwin H.

Committee Member

White, Larry R.

Committee Member

Grimes, Paul W.

Committee Member

Hardin, William G. III

Committee Member

Rogers, Kevin E.

Date of Degree

1-1-2004

Original embargo terms

MSU Only Indefinitely

Document Type

Dissertation - Open Access

Major

Finance

Degree Name

Doctor of Philosophy

College

College of Business and Industry

Department

Department of Finance and Economics

Abstract

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.

URI

https://hdl.handle.net/11668/19237

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