Capital Structure Affecting Firm Value In Thailand

Authors

  • Chanisa Maneerattanarungrot
  • Kwunkamol Donkwa

Keywords:

Capital Structure, Firm Value, Structural Equation Model

Abstract

This study explores how performance, growth opportunity, tangible assets, risk, and liquidity
affect a firm’s capital structure and how capital structure affects firm value. Structural equation
modeling is used to analyze three accounting periods (2012–2014) of financial data from 315
firms listed on the Stock Exchange of Thailand. This study finds that tangibility positively affects debt financing and liquidity, risk negatively affect debt financing, and debt financing has no effect on a firm value. Financial managers could use these results to develop their capital
structure to support other operations within the firm. These results will also fill the gap in both
empirical and theoretical knowledge of debt financing’s mediating role on the firms listed on
the Stock Exchange of Thailand.

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Published

2018-12-23