The University of Southampton
University of Southampton Institutional Repository

Fluctuations in the supply of credit and its effects on the capital structure of Japanese firms

Voutsinas, Konstantinos (2010) Fluctuations in the supply of credit and its effects on the capital structure of Japanese firms University of Southampton, School of Management, Doctoral Thesis , 383pp.

Record type: Thesis (Doctoral)

Abstract

This study examines how fluctuations in the supply of credit and financial constraints affect capital structure. It is one of the first studies to do so and its methodology is inspired by the recent studies of Faulkender & Petersen (2006) and Bougheas et al. (2006). It examines the economy of Japan, a perfect testing ground for this theory due to the extreme credit supply fluctuations that have occurred during the past years. Furthermore under this new perspective of capital structure theory two more hypotheses are tested. A “horse race” test between the two predominant theories of capital structure, the trade-off and the pecking order hypothesis, is run. The methodology utilised to perform this test is similar to that derived by Shyam-Sunder & Myers (1999). Finally the role of trade credit, a factor overlooked by the majority of previous capital structure studies, is investigated through the use of a similar methodology as that utilised by Mateut et al. (2006). The results of this panel data study, applied in a large sample of public and private firms, clearly indicate that fluctuations in the supply of credit affect capital structure and also that Japanese firms face financial constraints. The pecking order hypothesis is proven to be the winner of the “horse race” test and trade credit is found to be a significant factor of capital structure and more specifically a substitute to bank credit. These findings should be taken into consideration by future research and even perhaps lead into the creation of a new theory of capital structure

PDF Final_PhD_Thesis_Konstantinos_Voutsinas_04032011.pdf - Other
Download (1MB)

More information

Published date: December 2010
Organisations: University of Southampton

Identifiers

Local EPrints ID: 176251
URI: http://eprints.soton.ac.uk/id/eprint/176251
PURE UUID: 7dc7b11d-6da8-4f76-bdfd-5b987fc435f5

Catalogue record

Date deposited: 20 May 2011 14:21
Last modified: 18 Jul 2017 12:08

Export record

Contributors

Author: Konstantinos Voutsinas
Thesis advisor: Richard Werner

University divisions

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×