The determinants of Capital structure of firms in JapanTools CHEN, ZHANQUAN (2013) The determinants of Capital structure of firms in Japan. [Dissertation (University of Nottingham only)] (Unpublished)
AbstractThis dissertation is going to study the determinants of capital structure of firms in Japan. As previous empirical researches, they all pointed out the factors in different countries. Therefore, it is going to carry out the empirical research in Japanese firms. The sample data used in this dissertation is from a panel data set of 193 non-financial companies in the NIKKIE 225 during the periods from 2003 to 2013. Firstly, it presents MM theory and two mainly modern theories which are the trade-off theory and the pecking order theory. According to these theories, it finds some factors from our sample data. Then, the one-way ANOVA approach is applied. The results from ANOVA approach show that the industry classification is one of the determinants of capital structure. Moreover, it has applied the fixed effects model for the sample data to find out the other determinants. The results show that non-debt tax shield, size, growth opportunity, tangible assets and profitability are considered as determinants of capital structure of Japanese firms. And the liquidity needs more argument due to the insignificant result. In general, it cannot have a convincing theory to explain the behaviour of financing capital structure of Japanese firms. The most likely theory to follow in Japanese firms is the trade-off theory. In fact, it can guess that dynamic trade-off theory might be the most appropriate. The answer for this theory should be considered in the further study.
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