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Evolution of Capital Strcture in East Asia: Corporate Inertia or Endeavours?

  • Nigel Driffield


  • Sarmistha Pal


The present paper examines the capital structure adjustment dynamics of listed non-financial corporations in seven East Asian countries during 1994-2002. Compared to firms in the least affected countries, average leverages were much higher among firms in the worst affected countries while the average speeds of adjustment were lower. This general ranking is robust to various alternative specifications and sample selections. We argue that this pattern is closely linked to weaknesses in regulatory environment and lack of access to alternative sources of finance in the worst affected countries.

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Paper provided by Centre for Economic Development and Institutions(CEDI), Brunel University in its series CEDI Discussion Paper Series with number 08-04.

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Length: 51 pages
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:edb:cedidp:08-04
Contact details of provider: Postal: CEDI, Brunel University,West London,UB8 3PH,United Kingdom
Phone: +44 (0)1895 266649
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