Journal of International Business and Economy

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The Impact of Financial Crisis on the Determinants of Capital Structure of Listed Firms in India
Naliniprava Tripathy and Aman Asija
Volume 18, Number 1, Spring 2017 (pp. 101 ~ 121)

This study investigates the impact of 2007 financial crisis on the performance of capital structure of 88 non-financial companies listed on National Stock Exchange of India during the period between January 2003 to May 2014 by using Fixed Effect (FE) and Random Effect (RE) Models. The study has divided the data period into two distinct time intervals: (2003 -2007) as “pre-crisis” periods and (2008 – 2014) as “post-crisis” periods. The determinants of capital structure such as size, liquidity, profitability, and tangibility are used in the analysis. The findings show that tangibility and size have a greater influence on capital structure decision before crisis period. The findings also show that the coefficient of profitability is negative, displaying an inverse relationship with leverage. The study concludes that pecking order theory has more explanatory power in comparison to other theories in explaining the factors that determine the capital structure decision of listed firms of India.

Key Words: capital structure, determinants of capital structure, financial crisis, fixed effect model, random effect model

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Firm Performance and Employee Downsizing: The Moderating Role of National Culture
Andre L. Honoree and Mario Krenn
Volume 18, Number 2, Fall 2017 (pp. 1 ~ 31)
China FDI Booms but Problems Persist for FIEs
M. John Foster and Choo Shin Tseng
Volume 18, Number 1, Spring 2017 (pp. 70 ~ 100)