Publication:
Dynamic capital structure and political patronage: the case of Malaysia
| DC Field | Value | |
|---|---|---|
| dc.contributor.author | Muhammed-Shahid Ebrahim | |
| dc.contributor.author | Sourafel Girmab | |
| dc.contributor.author | Mohamed Eskandar Shah Mohd Rasid | |
| dc.contributor.author | Jonathan Williams | |
| dc.date.accessioned | 2016-07-25T19:25:47Z | |
| dc.date.available | 2016-07-25T19:25:47Z | |
| dc.date.issued | 2014 | |
| dc.description.abstract | This paper investigates the effect of political patronage on firms' capital structure. The evidence is from Malaysia, a country characterised by relationship-capitalism, and covers 1988 to 2009. Using a system GMM estimator we find firms set leverage targets and adjust towards them following deviations at the rate of 28% per annum. Next, we construct a natural experiment and use a difference-in-differences model to investigate if the strategic financing decisions of politically patronised firms differ from non-connected firms after an exogenous shock caused by the 1997 Asian crisis. Our results unambiguously demonstrate a significant difference in the capital structure of patronised firms relative to non-connected firms following the exogenous shock but only for the crisis period 1998–2001. After 2002 the capital structures of patronised and non-connected firms are statistically equivalent. | |
| dc.identifier.citation | Ebrahim, M., Girmab, S., Mohd Rasid, M. E. S., & Williams, J. (2014). Dynamic capital structure and political patronage: the case of Malaysia. International Review of Financial Analysis, 31, 117–128. https://doi.org/10.1016/j.irfa.2013.11.004 | |
| dc.identifier.doi | https://doi.org/10.1016/j.irfa.2013.11.004 | |
| dc.identifier.uri | https://ikr.inceif.edu.my/handle/INCEIF/1332 | |
| dc.language | English | |
| dc.language.iso | eng | |
| dc.publisher | Elsevier | |
| dc.rights | 2014. Elsevier | |
| dc.source | CRP | |
| dc.subject | Asian financial crisis | |
| dc.subject | Capital structural | |
| dc.subject | Political patronage | |
| dc.title | Dynamic capital structure and political patronage: the case of Malaysia | |
| dc.type | Journal Article | |
| dlc.maintopic | Conventional finance | |
| dlc.subtopic | Economics | |
| dspace.entity.type | Publication | |
| ikr.doctype | Scholarly Works | |
| ikr.topic.maintopic | Conventional finance | |
| ikr.topic.subtopic | Conventional finance::Economics | |
| Appears in Collections |