IDEAS home Printed from
   My bibliography  Save this article

Macroeconomic Conditions and Capital Structure over the Business Cycle: Further Evidence in the Context of Taiwan


  • Hsien-Hung H. Yeh
  • Eduardo Roca


The authors examine the effect of macroeconomic conditions on the capital structure of firms in the petrochemical, textile, and electronics industries of Taiwan during the period 1983-2007, which covers six and a half business cycles. Controlling for the effects of economic growth, industry type, and firm-specific factors, we find that macroeconomic conditions have a significant effect on debt ratios during the sample period. Debt ratios of firms in these industries are procyclical during the period before the 1997-98 Asian financial crisis, but countercyclical during the period after the Asian financial crisis.

Suggested Citation

  • Hsien-Hung H. Yeh & Eduardo Roca, 2012. "Macroeconomic Conditions and Capital Structure over the Business Cycle: Further Evidence in the Context of Taiwan," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(S3), pages 141-156, September.
  • Handle: RePEc:mes:emfitr:v:48:y:2012:i:s3:p:141-156

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:48:y:2012:i:s3:p:141-156. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.