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

Bose, U., MacDonald, R. and Tsoukas, S. (2019) Policy initiatives and firms' access to external finance: evidence from a panel of emerging Asian economies. Journal of Corporate Finance, 59, pp. 162-184. (doi: 10.1016/j.jcorpfin.2016.09.008)

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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:Articles
Additional Information:The first author gratefully acknowledges financial support from the Economic and Social Research Council (grant number: ES/J500136/1).
Glasgow Author(s) Enlighten ID:Tsoukas, Professor Serafeim and MacDonald, Professor Ronald
Authors: Bose, U., MacDonald, R., and Tsoukas, S.
Subjects:H Social Sciences > HG Finance
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of Corporate Finance
ISSN (Online):1872-6313
Published Online:23 September 2016
Copyright Holders:Copyright © 2019 The Authors
First Published:First published in Journal of Corporate Finance 59:162-184
Publisher Policy:Reproduced under a Creative Commons License

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Project CodeAward NoProject NamePrincipal InvestigatorFunder's NameFunder RefLead Dept
190423ESRC Doctoral Training Centre 2011...Mary Beth KneafseyEconomic and Social Research Council (ESRC)ES/J500136/1Research and Innovation Services