Do Indonesian firms practice target capital structure? A dynamic approach

Haron, Razali (2016) Do Indonesian firms practice target capital structure? A dynamic approach. Journal of Asia Business Studies, 10 (3). pp. 318-334. ISSN 1558-7894

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Abstract

This study investigates the dynamic aspects of capital structure particularly on the existence of target capital structure, the speed of adjustment and the factors influencing target capital structure of Indonesian firms. This study finds that Indonesian firms do practice target capital structure and the capital structure decision is influenced by firm specific factors like profitability, business risk, firm size, liquidity and share price performance due to time varying factors. Pursuing target capital structure and identifying the influencing factors may gear the firm to value maximization thus is indeed a paramount move for a firm to ensure sustainability and competitiveness and firms in Indonesia demonstrate that in this study.

Item Type:	Article (Journal)
Additional Information:	4581/51177
Uncontrolled Keywords:	Emerging markets,speed,capital structure
Subjects:	H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Razali Haron
Date Deposited:	21 Jul 2016 09:40
Last Modified:	13 Apr 2017 14:37
URI:	http://irep.iium.edu.my/id/eprint/51177

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