The Determinants of Capital Structure: Empirical evidence from Thai Banks

  • David E. Allen
  • Robert John Powell .
DOI: https://doi.org/10.22610/imbr.v5i8.1068

Abstract

The aim of this study is to examine the determinants of the capital structure of Thai banks. The data spans a ten year period from 1999 – 2008. The differentiation point of this study is that, whereas most studies on capital structure focus predominantly on internal bank variables, this study, in addition to internal variables includes market-based risk variables. A range of market-based default and value at risk variables were considered which were then narrowed down to improve the model. Fixed effects panel data analysis is employed, with both market and book leverage used as dependent variables. The Thai bank study is benchmarked to Japanese and Malaysian banks. The study found that the significance of the market-based variables is greater for market leverage than for book leverage. The results can assist regulators and banks in understanding the impact of different market and internal variables on capital.

Downloads

Download data is not yet available.
Published
2013-08-30
How to Cite
Allen, D. E., & ., R. J. P. (2013). The Determinants of Capital Structure: Empirical evidence from Thai Banks. Information Management and Business Review, 5(8), pp. 401-410. https://doi.org/10.22610/imbr.v5i8.1068
Issue
Vol 5 No 8 (2013)
Section
Research Paper

Copyright (c) 2013 Information Management and Business Review

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team  edits and formats manuscripts to bring uniformity and standardization in published material.

This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.