{"title":"The Impact of Industry-Adjusted Profitability and S-Curve Targeted Industry on Capital Structure: Evidence from Thailand","authors":"Sirada Nuanpradit","doi":"10.21315/aamjaf2023.19.1.9","DOIUrl":null,"url":null,"abstract":"This study examines the impact of industry-adjusted profitability and S-curve targeted industries under an innovation-driven economy on firms’ capital structures in Thailand. The results demonstrate that a superior degree of industry-adjusted profitability reduces the need for debt financing. Within the industry, franchise and harvest firms with sufficient earnings have a lower debt overhang than under-performing firms. Furthermore, the S-curve targeted industries, which typically use debt to finance their expensive investments, appear to use fewer loans when they feel pressured by the investment support policy to intensify research and development (R&D) activities. Overall, in the emerging market geared toward a new economic roadmap, firms’ capital structures are shaped by competitive performance as well as industry and policy forces.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.7000,"publicationDate":"2023-06-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Academy of Management Journal of Accounting and Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.21315/aamjaf2023.19.1.9","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
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Abstract
This study examines the impact of industry-adjusted profitability and S-curve targeted industries under an innovation-driven economy on firms’ capital structures in Thailand. The results demonstrate that a superior degree of industry-adjusted profitability reduces the need for debt financing. Within the industry, franchise and harvest firms with sufficient earnings have a lower debt overhang than under-performing firms. Furthermore, the S-curve targeted industries, which typically use debt to finance their expensive investments, appear to use fewer loans when they feel pressured by the investment support policy to intensify research and development (R&D) activities. Overall, in the emerging market geared toward a new economic roadmap, firms’ capital structures are shaped by competitive performance as well as industry and policy forces.
期刊介绍：
To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets
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