The moderating effect of firm age on capital structure choices: evidence from emerging markets
This research analyses how a firm’s age moderates the link between emerging market firm characteristics such as their profitability, firm size, asset tangibility, and their financing decisions (i.e., the level of leverage undertaken by these firms). Our empirical analysis reveals more evidence that...
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| Format: | Article |
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Springer Nature
2024
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| _version_ | 1825940217106792448 |
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| author | Matemilola, Bolaji Tunde Kijkasiwat, Ploypailin Liew, Chee Yoong |
| author_facet | Matemilola, Bolaji Tunde Kijkasiwat, Ploypailin Liew, Chee Yoong |
| author_sort | Matemilola, Bolaji Tunde |
| collection | UPM |
| description | This research analyses how a firm’s age moderates the link between emerging market firm characteristics such as their profitability, firm size, asset tangibility, and their financing decisions (i.e., the level of leverage undertaken by these firms). Our empirical analysis reveals more evidence that firm age, as a firm-specific factor, not only amplifies the negative influence of profitability on leverage but also reinforces the adverse relationship between firm size and leverage. In addition, we also found that firm age weakens the positive relationship between asset tangibility and leverage. This research contributes to the corporate finance, corporate governance and emerging market finance literature by analysing how firm age influences the effects of emerging market firm characteristics. Additionally, this study contributes to the growing literature on the determinants of the gearing of firms, particularly on the role of firm-specific factors in explaining the variation in firms’ leverage. © The Author(s) under exclusive licence to Associazione Amici di Economia e Politica Industriale 2024. |
| first_indexed | 2024-12-09T02:24:51Z |
| format | Article |
| id | upm.eprints-112899 |
| institution | Universiti Putra Malaysia |
| last_indexed | 2024-12-09T02:24:51Z |
| publishDate | 2024 |
| publisher | Springer Nature |
| record_format | dspace |
| spelling | upm.eprints-1128992024-10-28T07:55:38Z http://psasir.upm.edu.my/id/eprint/112899/ The moderating effect of firm age on capital structure choices: evidence from emerging markets Matemilola, Bolaji Tunde Kijkasiwat, Ploypailin Liew, Chee Yoong This research analyses how a firm’s age moderates the link between emerging market firm characteristics such as their profitability, firm size, asset tangibility, and their financing decisions (i.e., the level of leverage undertaken by these firms). Our empirical analysis reveals more evidence that firm age, as a firm-specific factor, not only amplifies the negative influence of profitability on leverage but also reinforces the adverse relationship between firm size and leverage. In addition, we also found that firm age weakens the positive relationship between asset tangibility and leverage. This research contributes to the corporate finance, corporate governance and emerging market finance literature by analysing how firm age influences the effects of emerging market firm characteristics. Additionally, this study contributes to the growing literature on the determinants of the gearing of firms, particularly on the role of firm-specific factors in explaining the variation in firms’ leverage. © The Author(s) under exclusive licence to Associazione Amici di Economia e Politica Industriale 2024. Springer Nature 2024 Article PeerReviewed Matemilola, Bolaji Tunde and Kijkasiwat, Ploypailin and Liew, Chee Yoong (2024) The moderating effect of firm age on capital structure choices: evidence from emerging markets. Journal of Industrial and Business Economics. ISSN 0391-2078 https://link.springer.com/article/10.1007/s40812-024-00299-z 10.1007/s40812-024-00299-z |
| spellingShingle | Matemilola, Bolaji Tunde Kijkasiwat, Ploypailin Liew, Chee Yoong The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title | The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title_full | The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title_fullStr | The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title_full_unstemmed | The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title_short | The moderating effect of firm age on capital structure choices: evidence from emerging markets |
| title_sort | moderating effect of firm age on capital structure choices evidence from emerging markets |
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