TY - JOUR
T1 - Are Corporate Financing Decisions Different in Japan? An Empirical Study on Capital Structure
AU - Hirota, Shin'Ichi
N1 - Funding Information:
1 Earlier drafts of this paper were presented at the Kansai Economic Research Center, Kobe University, the Institute for Posts and Telecommunications Policy Japan, Osaka University, Hitotsubashi University, and the 1997 Nippon Finance Association meetings. I thank an anonymous referee and the Editor of this journal (Takeo Hoshi), Uri Ben-Zion, Atsuo Fukuda, Ei Hagihara, Akiyoshi Horiuchi, Ken Koga, Seiji Matsutani, Colin McKenzie, Hideaki Miyajima, Hiroshi Mizuno, Nobuhiro Mori, Kazuo Ogawa, Yasuhiro Ohiwa, Yasuhiko Tanigawa, Yoshiro Tsutsui, Hirofumi Uchida, Konari Uchida, and participants at the seminars and meetings for valuable comments and discussion. This research is supported by a grant from the Zengin Foundation for Studies on Economics and Finance.
PY - 1999/9
Y1 - 1999/9
N2 - This paper investigates empirically how Japanese firms determine capital structure. I show that a firm's capital structure in Japan can be explained, to some extent, by real factors derived from theories of the capital structure. I also find remarkable results showing that the capital structure of Japanese firms is substantially affected by the institutional and regulatory characteristics of Japanese capital markets. Therefore, I conclude that both real and institutional factors are important determinants of corporate financing decisions in Japan. This result indicates that it is necessary to consider both theories and institutional features in each country to fully understand a firm's capital structure choice. J. Japan. Int. Econ., September 1999, 13(3), pp. 201-229. School of Commerce, Waseda University, 1-6-1, Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan. Copyright 1999 Academic Press. Journal of Economic Literature Classification Numbers: G15, G32, G38.
AB - This paper investigates empirically how Japanese firms determine capital structure. I show that a firm's capital structure in Japan can be explained, to some extent, by real factors derived from theories of the capital structure. I also find remarkable results showing that the capital structure of Japanese firms is substantially affected by the institutional and regulatory characteristics of Japanese capital markets. Therefore, I conclude that both real and institutional factors are important determinants of corporate financing decisions in Japan. This result indicates that it is necessary to consider both theories and institutional features in each country to fully understand a firm's capital structure choice. J. Japan. Int. Econ., September 1999, 13(3), pp. 201-229. School of Commerce, Waseda University, 1-6-1, Nishiwaseda, Shinjuku-ku, Tokyo, 169-8050, Japan. Copyright 1999 Academic Press. Journal of Economic Literature Classification Numbers: G15, G32, G38.
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U2 - 10.1006/jjie.1999.0435
DO - 10.1006/jjie.1999.0435
M3 - Article
AN - SCOPUS:0037922383
SN - 0889-1583
VL - 13
SP - 201
EP - 229
JO - Journal of The Japanese and International Economies
JF - Journal of The Japanese and International Economies
IS - 3
ER -