Northampton Electronic Collection of Theses and Research

Rising corporate debt and value relevance of supply-side factors in South Africa

Machokoto, M., Areneke, G. and Ibrahim, B. (2020) Rising corporate debt and value relevance of supply-side factors in South Africa. Journal of Business Research. 109, pp. 26-37. 0148-2963.

[img]

Machokoto_etal_EL_2019_Rising_Corporate_Debt_in_Emerging_Markets_Value_Relevance_of_Supply_Side_Factors_in ... (1MB)

Item Type:	Article
Abstract:	Motivated by the recent discovery of a significant increase in corporate debt in developed countries, we use a large sample of 775 listed companies to examine the dynamics and determinants of South African corporate debt. We find an 89% increase in the leverage of the average firm, from 11% in 1990 to 21% in 2015. Long-term and short-term debt increased by 103% and 67%, respectively. We find that this increase is pervasive, and cannot be explained entirely by either firm attributes or macroeconomic factors, despite the importance of the latter. Instead, we find supply-side factors to be the main determinants of the upward trend in corporate debt, highlighting their importance to corporate debt policies in emerging economies.
Creators:	Machokoto, Michael, Areneke, Geofry and Ibrahim, Boulis
Faculties, Divisions and Institutes:	Faculties > Faculty of Business & Law > Accounting & Finance
Date:	1 March 2020
Date Type:	Publication
Page Range:	pp. 26-37
Journal or Publication Title:	Journal of Business Research
Volume:	109
Number of Pages:	12
Language:	English
DOI:	https://doi.org/10.1016/j.jbusres.2019.11.039
ISSN:	0148-2963
Status:	Published / Disseminated
Refereed:	Yes
Related URLs:	https://linkinghub.elsevier.com/retrieve... http://www.mendeley.com/research/rising-... https://pure.northampton.ac.uk/en/public...
URI:	http://nectar.northampton.ac.uk/id/eprint/12292

Actions (login required)

Edit Item

Edit Item

Altmetric

Accessibility Statement