Cover Image

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...

Full description

Saved in:
Bibliographic Details
Main Authors: Matemilola, Bolaji Tunde, Kijkasiwat, Ploypailin, Liew, Chee Yoong
Format: Article
Published: Springer Nature 2024
Online Access:http://psasir.upm.edu.my/id/eprint/112899/
https://link.springer.com/article/10.1007/s40812-024-00299-z
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.upm.eprints.112899
record_format eprints
spelling my.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
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
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.
format Article
author Matemilola, Bolaji Tunde
Kijkasiwat, Ploypailin
Liew, Chee Yoong
spellingShingle Matemilola, Bolaji Tunde
Kijkasiwat, Ploypailin
Liew, Chee Yoong
The moderating effect of firm age on capital structure choices: evidence from emerging markets
author_facet Matemilola, Bolaji Tunde
Kijkasiwat, Ploypailin
Liew, Chee Yoong
author_sort Matemilola, Bolaji Tunde
title 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_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_sort moderating effect of firm age on capital structure choices: evidence from emerging markets
publisher Springer Nature
publishDate 2024
url http://psasir.upm.edu.my/id/eprint/112899/
https://link.springer.com/article/10.1007/s40812-024-00299-z
_version_ 1814936532874690560
score 13.211869

Similar Items