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Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies

Bose, U and MacDonald, R and Tsoukas, S (2016) 'Policy initiatives and firms' access to external finance: Evidence from a panel of emerging Asian economies.' Journal of Corporate Finance. ISSN 0929-1199 (In Press)

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Abstract

© 2016 The Authors. This paper analyses the impact of policy initiatives co-ordinated by Asian national governments on firms' composition of external finance. Using a unique firm-level database of eight Asian countries- Hong Kong SAR, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand over the period of 1996-2012 and a difference-in-differences approach, the results show a significant response of the debt composition to the policy change. We find that firms increased their uptake of long-term debt, while decreased their short-term debt. We also document that less risky and more profitable firms are more significantly affected by the policy change than riskier and less profitable firms. Finally, we show that the improved access to external finance after the policy initiative helped firms to raise their investment spending.

Item Type: Article
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HD Industries. Land use. Labor > HD58.7 Organizational behavior, change and effectiveness. Corporate culture
H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Udichibarna Bose
Date Deposited: 22 Sep 2016 10:31
Last Modified: 06 Mar 2019 12:15
URI: http://repository.essex.ac.uk/id/eprint/17621

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