Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India

S. Buvanendra; P. Sridharan; S. Thiyagarajan

doi:10.1016/j.iimb.2017.10.002

IIMB Management Review (Dec 2017)

Firm characteristics, corporate governance and capital structure adjustments: A comparative study of listed firms in Sri Lanka and India

S. Buvanendra,
P. Sridharan,
S. Thiyagarajan

Affiliations

S. Buvanendra: Department of Finance, University of Colombo, Sri Lanka
P. Sridharan: Department of International Business, School of Management, Pondicherry Central University, India
S. Thiyagarajan: Department of International Business, School of Management, Pondicherry Central University, India

DOI: https://doi.org/10.1016/j.iimb.2017.10.002
Journal volume & issue: Vol. 29, no. 4
pp. 245 – 258

Abstract

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This study explores the most important determinants of speed of adjustment (SOA) towards optimum/target capital structure of listed firms in Sri Lanka and India for the period 2003/04 to 2012/13. Ten independent variables comprising both firm specific and corporate governance factors have been tested using dynamic adjustment model. We find that firms in both countries partly adjust to an optimum capital structure over time. Furthermore, there are international differences existing in the significant determinants of capital structure adjustments between Sri Lanka and India.

Published in IIMB Management Review

ISSN: 0970-3896 (Print)
Publisher: Elsevier
Country of publisher: India
LCC subjects: Social Sciences: Commerce: Business
Website: http://www.journals.elsevier.com/iimb-management-review/

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