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Corporate leverage in emerging Asia

In: Financial systems and the real economy

Author

Listed:
  • Vidhan Goyal

    (Hong Kong University of Science and Technology)

  • Frank Packer

    (Bank for International Settlements)

Abstract

This paper examines the leverage of firms of seven economies in emerging Asia – Hong Kong SAR, Indonesia, Korea, Malaysia, the Philippines, Singapore and Thailand – between 1991 and 2015. For the sample as a whole, neither the mean nor median, nor the upper tails of the leverage distribution show any upward shift in recent years. Corporate leverage appears quite stable across most jurisdictions, but not all. Standard firm characteristics such as asset tangibility and size explain leverage differences across the whole sample and within jurisdiction. Factors that help to overcome informational asymmetries may be less important in jurisdictions with stronger institutions.

Suggested Citation

  • Vidhan Goyal & Frank Packer, 2017. "Corporate leverage in emerging Asia," BIS Papers chapters, in: Bank for International Settlements (ed.), Financial systems and the real economy, volume 91, pages 65-94, Bank for International Settlements.
    • Handle: RePEc:bis:bisbpc:91-08
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    References listed on IDEAS

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    1. Saeidinezhad, Elham, 2019. "Corporate Debt: Where is the Danger?," MPRA Paper 98547, University Library of Munich, Germany.
    2. Sahminan, 2021. "Impacts Of Global Financial Conditions On Non-Financial Corporate Leverage In Indonesia," Working Papers WP/14/2021, Bank Indonesia.

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    More about this item

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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