Speed of adjustment towards target leverage in the ASEAN countries
This study aims to investigate the speed of adjustment towards target total debt, long-term debt and short-term debt of the Association of South East Asian Nations (ASEAN) namely Malaysia, Singapore, Indonesia and Thailand. The sample of this study included 400 publicly listed firms from 2007 to 201...
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| Format: | Article |
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Universiti Malaysia Sarawak
2021
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| _version_ | 1796983042783313920 |
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| author | Chua, Mei Shan Ab Razak, Nazrul Hisyam Md Nassir, Annuar Yahya, Mohamed Hisham |
| author_facet | Chua, Mei Shan Ab Razak, Nazrul Hisyam Md Nassir, Annuar Yahya, Mohamed Hisham |
| author_sort | Chua, Mei Shan |
| collection | UPM |
| description | This study aims to investigate the speed of adjustment towards target total debt, long-term debt and short-term debt of the Association of South East Asian Nations (ASEAN) namely Malaysia, Singapore, Indonesia and Thailand. The sample of this study included 400 publicly listed firms from 2007 to 2017. Analyses were done with two-step System Generalised Method of Moments (SYS-GMM). Using large sample, the results showed that ASEAN firms are under-adjusted and adjusting with the speed of 30.95%, 37.49% and 40.11% toward total debt, long-term debt and short-term debt, accordingly. To close half of the leverage gap, ASEAN firms need 1.87, 1.62 and 1.35 years for total debt, long-term debt and short-term debt, respectively. The results based on individual country indicated that each country has its own adjustment speed to achieve the target leverage. This study suggests that ASEAN firms are attempting to alter the leverage to its optimum. |
| first_indexed | 2024-03-06T11:00:44Z |
| format | Article |
| id | upm.eprints-95131 |
| institution | Universiti Putra Malaysia |
| last_indexed | 2024-03-06T11:00:44Z |
| publishDate | 2021 |
| publisher | Universiti Malaysia Sarawak |
| record_format | dspace |
| spelling | upm.eprints-951312023-02-22T09:02:28Z http://psasir.upm.edu.my/id/eprint/95131/ Speed of adjustment towards target leverage in the ASEAN countries Chua, Mei Shan Ab Razak, Nazrul Hisyam Md Nassir, Annuar Yahya, Mohamed Hisham This study aims to investigate the speed of adjustment towards target total debt, long-term debt and short-term debt of the Association of South East Asian Nations (ASEAN) namely Malaysia, Singapore, Indonesia and Thailand. The sample of this study included 400 publicly listed firms from 2007 to 2017. Analyses were done with two-step System Generalised Method of Moments (SYS-GMM). Using large sample, the results showed that ASEAN firms are under-adjusted and adjusting with the speed of 30.95%, 37.49% and 40.11% toward total debt, long-term debt and short-term debt, accordingly. To close half of the leverage gap, ASEAN firms need 1.87, 1.62 and 1.35 years for total debt, long-term debt and short-term debt, respectively. The results based on individual country indicated that each country has its own adjustment speed to achieve the target leverage. This study suggests that ASEAN firms are attempting to alter the leverage to its optimum. Universiti Malaysia Sarawak 2021 Article PeerReviewed Chua, Mei Shan and Ab Razak, Nazrul Hisyam and Md Nassir, Annuar and Yahya, Mohamed Hisham (2021) Speed of adjustment towards target leverage in the ASEAN countries. International Journal of Business and Society, 22 (1). 313 - 331. ISSN 1511-6670 https://publisher.unimas.my/ojs/index.php/IJBS/article/view/3177 10.33736/ijbs.3177.2021 |
| spellingShingle | Chua, Mei Shan Ab Razak, Nazrul Hisyam Md Nassir, Annuar Yahya, Mohamed Hisham Speed of adjustment towards target leverage in the ASEAN countries |
| title | Speed of adjustment towards target leverage in the ASEAN countries |
| title_full | Speed of adjustment towards target leverage in the ASEAN countries |
| title_fullStr | Speed of adjustment towards target leverage in the ASEAN countries |
| title_full_unstemmed | Speed of adjustment towards target leverage in the ASEAN countries |
| title_short | Speed of adjustment towards target leverage in the ASEAN countries |
| title_sort | speed of adjustment towards target leverage in the asean countries |
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