Capital structure policies of companies in an emerging economy: a study of THAI companies

Abstract

This paper addresses to the question: How do firms in emerging economy choose their capital structure? Thai firms capital structures were empirically investigated to find their patterns over the period of the country s financial liberalisation and economic success. Also, the attributes of the firms capital-structure-determinants were tested and analysed, including managers financial policy practice. Data used in this study were derived from the 221 Thai manufacturing firms listed on the Stock Exchange of Thailand for the period 1990 to 1995 and from a questionnaire survey of the chief financial officers.