| ID | 096238 |
| Title Proper | Study of the capital structure of Taiwanese firms investing in China |
| Language | ENG |
| Author | Chiang, Yi-Chein ; Lin, Jing-Syue |
| Publication | 2010. |
| Summary / Abstract (Note) | We use the panel threshold regression model to examine the capital structure decision of Taiwanese firms investing in China for the period 2000 to 2006. Results of the entire sample reveal that a firm's debt ratio decreases as foreign direct investments (FDIs) in China increase when firms have low FDIs but becomes insignificant when firms have high FDIs in China. When we examine Taiwanese firms having FDIs in China and in other developed countries, their debt ratios increase as FDIs in China increase. In contrast, their debt ratios decline when Taiwanese firms with FDIs in China and in other developing countries are considered. Our results imply that the capital structure of Taiwanese firms depends on the overall portfolio risk of their investments. |
| `In' analytical Note | Journal of Chinese Economics and Business Studies Vol. 8, No. 2; May 2010: p.185 - 201 |
| Journal Source | Journal of Chinese Economics and Business Studies Vol. 8, No. 2; May 2010: p.185 - 201 |
| Key Words | FDIs in China ; Capital Structure ; Panel Threshold Regression Model ; Bootstrap Method ; Upstream - Downstream Hypothesis |