Risks and financing decisions: dynamic panel data evidence from the Philippines
Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and...
| Päätekijät: | , , , |
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| Aineistotyyppi: | Conference or Workshop Item |
| Kieli: | English |
| Julkaistu: |
Panoply Consultancy
2017
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| Linkit: | http://psasir.upm.edu.my/id/eprint/64959/1/2017-6.pdf |
| _version_ | 1825932853117976576 |
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| author | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
| author_facet | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
| author_sort | Chow, Yee Peng |
| collection | UPM |
| description | Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and market leverage ratios. We further analyze the effects of macroeconomic and firm-specific uncertainty on firm debt maturity. The results provide strong evidence of the negative effects of macroeconomic and firm-specific uncertainty on firm leverage. The results also indicate that while short-term debt is adversely affected by both firm-specific and macroeconomic uncertainty, long-term debt is only affected by macroeconomic uncertainty. This implies that although the Philippine firms take into account both firm-specific and macroeconomic uncertainty in their financing decisions in the short-run, they are only concerned about the adverse effects of macroeconomic uncertainty in the long-run. |
| first_indexed | 2024-03-06T09:48:19Z |
| format | Conference or Workshop Item |
| id | upm.eprints-64959 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:48:19Z |
| publishDate | 2017 |
| publisher | Panoply Consultancy |
| record_format | dspace |
| spelling | upm.eprints-649592018-09-03T04:09:49Z http://psasir.upm.edu.my/id/eprint/64959/ Risks and financing decisions: dynamic panel data evidence from the Philippines Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and market leverage ratios. We further analyze the effects of macroeconomic and firm-specific uncertainty on firm debt maturity. The results provide strong evidence of the negative effects of macroeconomic and firm-specific uncertainty on firm leverage. The results also indicate that while short-term debt is adversely affected by both firm-specific and macroeconomic uncertainty, long-term debt is only affected by macroeconomic uncertainty. This implies that although the Philippine firms take into account both firm-specific and macroeconomic uncertainty in their financing decisions in the short-run, they are only concerned about the adverse effects of macroeconomic uncertainty in the long-run. Panoply Consultancy 2017 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/64959/1/2017-6.pdf Chow, Yee Peng and Muhammad, Junaina and Amin Noordin, Bany Ariffin and Cheng, Fan Fah (2017) Risks and financing decisions: dynamic panel data evidence from the Philippines. In: 3rd International Conference on Advanced Research in Business and Social Sciences 2017 (ICARBSS 2017), 29-30 Mar. 2017, Aseania Resort & Spa Langkawi, Malaysia. (pp. 405-411). |
| spellingShingle | Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title | Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title_full | Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title_fullStr | Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title_full_unstemmed | Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title_short | Risks and financing decisions: dynamic panel data evidence from the Philippines |
| title_sort | risks and financing decisions dynamic panel data evidence from the philippines |
| url | http://psasir.upm.edu.my/id/eprint/64959/1/2017-6.pdf |
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