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https://ptsldigital.ukm.my/jspui/handle/123456789/629955| Title: | Financing valuable investment projects in Japan: agency costs, organizational structure, and debt markets |
| Authors: | Huan, Roger D. Jo, Hoje H Kim, Yong |
| Conference Name: | The thirteenth Annual PACAP/FMA Finance Conference |
| Keywords: | Capital structure Japanese corporate finance Agency costs |
| Conference Date: | 2001-07-05 |
| Conference Location: | Westin Chosun Hotel, Seoul, Korea Radisson Plaza Hotel, Seoul, Korea |
| Abstract: | According to the agency hypothesis, corporations choose equity over debt in financing profitable new investments when the potential for conflicts between bondholders and stockholders is high. The Japanese institutional environment permits an examination of the agency hypothesis for firms with different organizational and debt structures. The negative relation between total debt- equity ratio and growth opportunities observed for U.S. firms in previous research is found only for non-keiretsu firms and not for firms who are members of a keiretsu group. In addition, the growth opportunities of keiretsu firms are unrelated to their use of long-term debt-equity ratios. These results provide favorable support for the agency hypothesis. |
| Pages: | 92 |
| Call Number: | HG4026.A536 2001 katsem |
| Appears in Collections: | Seminar Papers/ Proceedings / Kertas Kerja Seminar/ Prosiding |
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