Yeh, H H H (2018) How the capital structure of firms is determined over business cycles: Further evidence from the construction industry of Taiwan. Construction Management and Economics, 36(8), pp. 459-471. ISSN 01446193
Abstract
This paper uses the panel data regression model to study the Taiwanese construction industry during the period 1982–1995 because during this period, Taiwan’s gross domestic product shows a structural change in economic growth trends over three business cycles. This design allows us to examine whether the effects of firm characteristics and economic growth on capital structure vary with macroeconomic conditions and across periods with changing economic growth trends. First, the results show that the effect of macroeconomic conditions on capital structure is counter-cyclical. Second, the effects of firm characteristics on capital structure can vary with macroeconomic conditions, although firm characteristics do not have a direct effect on capital structure. Third, the effects of firm characteristics on capital structure can vary across periods with changing economic growth trends. Finally, economic growth does not have a direct effect on capital structure. However, the effect of economic growth on capital structure can vary with macroeconomic conditions and across periods with changing economic growth trends. The findings of this study can be a helpful reference for financial managers, creditors, investors and government policy-makers in emerging countries.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | debt ratio; economic growth; firm characteristics; macroeconomic conditions |
| Index terms: | investor, direct effect, regression model, emerging country, gross domestic product, construction industry, economic growth, capital structure, government policy, manager, Taiwan, evidence |
| Subjects: | practitioner, evaluation and assessment methods, economic analysis, public policy, development economics, Geography, factor and component analysis, economic development, statistical analysis, industry analysis, sociology |
| Topics: | International Construction, Business Strategy, Research Practice, Geographical Context, Stakeholder Management, Roles and Professions, Sustainability, Governance |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here