Business, Management and Accounting
8 years ago

Japanese firms' capital structure influenced by collateral and cash flow, not business groups.

1 view
SSRN Electronic Journal
The Capital Structure of Japanese Firms: A Partial Adjustment Analysis
Pascal Nguyên, Chander Shekhar

Paper Summary

Japanese firms' capital structure was analyzed using a partial adjustment model. By grouping firms based on leverage and profitability, it was found that adjustment speeds are similar to US firms. Highly leveraged firms are more influenced by collateral and cash flow. Creditworthiness and industry segment play a role in capital structure decisions, rather than business group affiliation.

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