Nexus of firm specific variables and capital structure decisions: an evidence from Asia Pacific region amid covid-19 crisis times

Abstract

The study aims to examine the influence of ‘firm-specific’ variables that determine the capital decisions of firms in the healthcare industry, considering the pre-pandemic and pandemic evidence. The study sample period is 2011-2021. With the present study, the interaction between factors specified by company and the impact due to pandemic on capital structuring decisioning in the healthcare field is thoroughly explored. The study considers all listed corporations from developed Asia Pacific Regions including Hong Kong, Australia, Japan, New Zealand and Singapore. The data is extracted from Refinitiv Database comprising annual data and omitting those records which are not complete or required data for variables resulting to a non-uniform cross sectional panel dataset. We used panel regression, supported by descriptive statistics and correlation. We found that factors such as size, profit and asset tangibility significantly influence borrowing decisions with notable differences in both pre and post pandemic period. This study supports future academics and has practical implications for the healthcare sector in deciding on their capital structure decisions for existing and future business expansion.

Keywords

• Healthcare industry
• capital structure decisions
• pandemic
• Asia pacific
• debt ratio
• Economics