Risks and financing decisions: dynamic panel data evidence from the Philippines
Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and...
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Panoply Consultancy
2017
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my.upm.eprints.649592018-09-03T04:09:49Z http://psasir.upm.edu.my/id/eprint/64959/ Risks and financing decisions: dynamic panel data evidence from the Philippines Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and market leverage ratios. We further analyze the effects of macroeconomic and firm-specific uncertainty on firm debt maturity. The results provide strong evidence of the negative effects of macroeconomic and firm-specific uncertainty on firm leverage. The results also indicate that while short-term debt is adversely affected by both firm-specific and macroeconomic uncertainty, long-term debt is only affected by macroeconomic uncertainty. This implies that although the Philippine firms take into account both firm-specific and macroeconomic uncertainty in their financing decisions in the short-run, they are only concerned about the adverse effects of macroeconomic uncertainty in the long-run. Panoply Consultancy 2017 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/64959/1/2017-6.pdf Chow, Yee Peng and Muhammad, Junaina and Amin Noordin, Bany Ariffin and Cheng, Fan Fah (2017) Risks and financing decisions: dynamic panel data evidence from the Philippines. In: 3rd International Conference on Advanced Research in Business and Social Sciences 2017 (ICARBSS 2017), 29-30 Mar. 2017, Aseania Resort & Spa Langkawi, Malaysia. (pp. 405-411). |
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Using a sample of listed non-financial Philippine firms over the period 2004-2014, this study empirically examines the effects of macroeconomic and firm-specific uncertainty on firm leverage. We employ a dynamic panel data method, namely the robust two-step system GMM estimator on both the book and market leverage ratios. We further analyze the effects of macroeconomic and firm-specific uncertainty on firm debt maturity. The results provide strong evidence of the negative effects of macroeconomic and firm-specific uncertainty on firm leverage. The results also indicate that while short-term debt is adversely affected by both firm-specific and macroeconomic uncertainty, long-term debt is only affected by macroeconomic uncertainty. This implies that although the Philippine firms take into account both firm-specific and macroeconomic uncertainty in their financing decisions in the short-run, they are only concerned about the adverse effects of macroeconomic uncertainty in the long-run. |
format |
Conference or Workshop Item |
author |
Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
spellingShingle |
Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah Risks and financing decisions: dynamic panel data evidence from the Philippines |
author_facet |
Chow, Yee Peng Muhammad, Junaina Amin Noordin, Bany Ariffin Cheng, Fan Fah |
author_sort |
Chow, Yee Peng |
title |
Risks and financing decisions: dynamic panel data evidence from the Philippines |
title_short |
Risks and financing decisions: dynamic panel data evidence from the Philippines |
title_full |
Risks and financing decisions: dynamic panel data evidence from the Philippines |
title_fullStr |
Risks and financing decisions: dynamic panel data evidence from the Philippines |
title_full_unstemmed |
Risks and financing decisions: dynamic panel data evidence from the Philippines |
title_sort |
risks and financing decisions: dynamic panel data evidence from the philippines |
publisher |
Panoply Consultancy |
publishDate |
2017 |
url |
http://psasir.upm.edu.my/id/eprint/64959/1/2017-6.pdf http://psasir.upm.edu.my/id/eprint/64959/ |
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