83
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Peer effects, industry concentration and capital structure: evidence from emerging market economies

, ORCID Icon &
Article: 2375682 | Received 14 Oct 2022, Accepted 29 Jun 2024, Published online: 14 Jul 2024

References

  • Adeoye, O. A., Islam, S. M., & Adekunle, A. I. (2020). Optimal capital structure and the debtholder-manager conflicts of interests: A management decision model. Journal of Modelling in Management, 16(4), 1070–20. https://doi.org/10.1108/JM2-03-2020-0095
  • Aghamolla, C., & Thakor, R. T. (2022). IPO peer effects. Journal of Financial Economics, 144(1), 206–226. https://doi.org/10.1016/j.jfineco.2021.05.055
  • Al-Gamrh, B., Ku Ismail, K., & Al-Dhamari, R. (2018). The role of corporate governance strength in crisis and non-crisis times. Applied Economics, 50(58), 6263–6284. https://doi.org/10.1080/00036846.2018.1489513
  • Almazan, A., & Molina, C. A. (2005). Intra-industry capital structure dispersion. Journal of Economics & Management Strategy, 14(2), 263–297. https://doi.org/10.1111/j.1530-9134.2005.00042.x
  • Aman, A., Isa, M. Y., & Naim, A. M. (2023). The role of macroeconomic and financial factors in bond market development in selected countries. Global Business Review, 24(4), 626–641. https://doi.org/10.1177/0972150920907206
  • Atradius Economic Research. (2016). A closer look at corporate debt in emerging market economies. Atradius.
  • Atsmon, Y., Kuentz, J.-F., & Seong, J. (2012, September). Building brands in emerging markets. The McKinsey Quarterly, 9, 1–6. https://www.mckinsey.com/business-functions/marketing-andsales/our-insights/building-brands-in-emerging-markets.
  • Bank for International Settlements. (2016). Financial systems and the real economy. Kuala Lumpur.
  • Bascle, G. (2008). Controlling for endogeneity with instrumental variables in strategic management research. Strategic Organization, 6(3), 285–327. https://doi.org/10.1177/1476127008094339
  • Benoit, J. P. (1984). Financially constrained entry in a game with incomplete information. The RAND Journal of Economics, 15(4), 490–499. https://doi.org/10.2307/2555520
  • Bertrand, J. (1883). Théorie mathématique de la richesse sociale. Journal des Savants, 67(1883), 499–508.
  • Beshears, J., Choi, J. J., Laibson, D., Madrian, B. C., & Milkman, K. L. (2015). The effect of providing peer information on retirement savings decisions. The Journal of Finance, 70(3), 1161–1201.
  • Bizjak, J., Lemmon, M., & Whitby, R. (2009). Option backdating and board interlocks. The Review of Financial Studies, 22(11), 4821–4847. https://doi.org/10.1093/rfs/hhn120
  • Booth, L., Aivazian, V., Demirguc-Kunt, A., & Maksimovic, V. (2001). Capital structures in developing countries. The Journal of Finance, 56(1), 87–130. https://doi.org/10.1111/0022-1082.00320
  • Bustamante, M. C., & Frésard, L. (2021). Does firm investment respond to peers’ investment? Management Science, 67(8), 4703–4724. https://doi.org/10.1287/mnsc.2020.3695
  • Campbell, J. Y., Hilscher, J., & Szilagyi, J. (2011). Predicting financial distress and the performance of distressed stocks. Journal of Investment Management, 9(2), 14–34.
  • Chen, J. J. (2004). Determinants of capital structure of Chinese-listed companies. Journal of Business Research, 57(12), 1341–1351. https://doi.org/10.1016/S0148-2963(03)00070-5
  • Chen, S., & Ma, H. (2017). Peer effects in decision-making: Evidence from corporate investment. China Journal of Accounting Research, 10(2), 167–188. https://doi.org/10.1016/j.cjar.2016.11.002
  • Chen, Y.-W., Chan, K., & Chang, Y. (2019). Peer effects on corporate cash holdings. International Review of Economics & Finance, 61, 213–227. Retrieved from Erişim Adresi http://www.sfm.url.tw/20thSFM/pdf/CompletePaper/028-670909802.pdf(01.05.2016)
  • Chen, Y. W., & Chang, Y. (2012). Peer effects on corporate cash holdings. Working Paper.
  • Choi, N., & Sias, R. W. (2009). Institutional industry herding. Journal of Financial Economics, 94(3), 469–491. https://doi.org/10.1016/j.jfineco.2008.12.009
  • Conlisk, J. (1980). Costly optimizers versus cheap imitators. Journal of Economic Behavior and Organization, 1(3), 275–293. https://doi.org/10.1016/0167-2681(80)90004-9
  • Delcoure, N. (2007). The determinants of capital structure in transitional economies. International Review of Economics & Finance, 16(3), 400–415. https://doi.org/10.1016/j.iref.2005.03.005
  • Demirer, R., Kutan, A. M., & Chen, C.-D. (2010). Do investors herd in emerging stock markets?: Evidence from the Taiwanese market. Journal of Economic Behavior & Organization, 76(2), 283–295. https://doi.org/10.1016/j.jebo.2010.06.013
  • Didier, T., Love, I., & Peria, M. S. (2010). What explains stock market’s vulnerability to the 2007-2008 crisis?. The World Bank Policy Research Working Paper 5224.
  • Didier, T., Love, I., & Peria, M. S. (2012). What explains comovement in stock market returns during the 2007–2008 crisis? International Journal of Finance & Economics, 17(2), 182–202. https://doi.org/10.1002/ijfe.442
  • Fairhurst, D., & Nam, Y. (2020). Corporate governance and financial peer effects. Financial Management, 49(1), 235–263. https://doi.org/10.1111/fima.12240
  • Fan, J. P., Wei, K. J., & Xu, X. (2011). Corporate finance and governance in emerging markets: A selective review and an agenda for future research. Journal of Corporate Finance, 17(2), 207–214. https://doi.org/10.1016/j.jcorpfin.2010.12.001
  • Foucault, T., & Fresard, L. (2014). Learning from peers’ stock prices and corporate investment. Journal of Financial Economics, 111(3), 554–577. https://doi.org/10.1016/j.jfineco.2013.11.006
  • Francis, B. B., Hasan, I., & Kostova, G. L. (2016). When do peers matter?: A cross-country perspective. Journal of International Money and Finance, 69, 364–389. https://doi.org/10.1016/j.jimonfin.2016.06.009
  • Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1–37. https://doi.org/10.1111/j.1755-053X.2009.01026.x
  • Glover, B. (2016). The expected cost of default. Journal of Financial Economics, 119(2), 284–299. https://doi.org/10.1016/j.jfineco.2015.09.007
  • Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal, 7(3), 281–312. https://doi.org/10.1177/1536867X0700700301
  • Hou, K., & Robinson, D. T. (2006). Industry concentration and average stock returns. The Journal of Finance, 61(4), 1927–1956. https://doi.org/10.1111/j.1540-6261.2006.00893.x
  • Institute for International Finance. (2017). Global debt monitor-April 2017.
  • Jiang, J., Xia, X., & Yang, J. (2019). Investment-based optimal capital structure. Applied Economics, 51(9), 972–981. https://doi.org/10.1080/00036846.2018.1524130
  • Jõeveer, K. (2013). Firm, country and macroeconomic determinants of capital structure: Evidence from transition economies. Journal of Comparative Economics, 41(1), 294–308. https://doi.org/10.1016/j.jce.2012.05.001
  • John, K., & Kadyrzhanova, D. (2008). Peer effects in corporate governance. Working Paper.
  • Kayo, E. K., & Kimura, H. (2011). Hierarchical determinants of capital structure. Journal of Banking & Finance, 35(2), 358–371. https://doi.org/10.1016/j.jbankfin.2010.08.015
  • Kinga, N. (2013). Corporate debt and crisis severity in Europe. e-Finanse. Financial Internet Quarterly, 9(1), 35–43.
  • Klemperer, P. (1992). Equilibrium product lines: Competing head-to-head may be less competitive. American Economic Review, 82(4), 740–755.
  • Knickerbocker, F. T. (1973). Oligopolistic reaction and multinational enterprise. Harvard University Press.
  • Korteweg, A. (2010). The net benefits to leverage. The Journal of Finance, 65(6), 2137–2170. https://doi.org/10.1111/j.1540-6261.2010.01612.x
  • Kumar, S., Sureka, R., & Colombage, S. (2020). Capital structure of SMEs: A systematic literature review and bibliometric analysis. Management Review Quarterly, 70(4), 535–565. https://doi.org/10.1007/s11301-019-00175-4
  • Leary, M. T., & Roberts, M. R. (2014). Do peer firms affect corporate financial policy? The Journal of Finance, 69(1), 139–178. https://doi.org/10.1111/jofi.12094
  • Li, G., Jing, Z., Li, J., & Feng, Y. (2023). Drivers of risk correlation among financial institutions: A study based on a textual risk disclosure perspective. Economic Modelling, 128, 106468. https://doi.org/10.1016/j.econmod.2023.106468
  • Li, K., Griffin, D., Yue, H., & Zhao, L. (2013). How does culture influence corporate risk-taking? Journal of Corporate Finance, 23, 1–22. https://doi.org/10.1016/j.jcorpfin.2013.07.008
  • Lieberman, M. B., & Asaba, S. (2006). Why do firms imitate each other? Academy of Management Review, 31(2), 366–385. https://doi.org/10.5465/amr.2006.20208686
  • Linnenluecke, M. K., Chen, X., Ling, X., Smith, T., & Zhu, Y. (2017). Research in finance: A review of influential publications and a research agenda. Pacific-Basin Finance Journal, 43, 188–199. https://doi.org/10.1016/j.pacfin.2017.04.005
  • Machokoto, M., Gyimah, D., & Ntim, C. G. (2021). Do peer firms influence innovation? The British Accounting Review, 53(5), 100988. https://doi.org/10.1016/j.bar.2021.100988
  • MacKay, P., & Phillips, G. M. (2005). How does industry affect firm financial structure? The Review of Financial Studies, 18(4), 1433–1466. https://doi.org/10.1093/rfs/hhi032
  • Manski, C. F. (1993). Identification of endogenous social effects: The reflection problem. The Review of Economic Studies, 60(3), 531–542. https://doi.org/10.2307/2298123
  • McKinsey Global Institute. (2015). Debt and (not much) deleveraging. McKinsey & Company.
  • Milliken, F. J. (1987). Three types of perceived uncertainty about the environment. Academy of Management Review, 12(1), 133–143. https://doi.org/10.2307/257999
  • Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81–102. https://doi.org/10.1257/jep.15.2.81
  • Opler, T. C., & Titman, S. (1994). Financial distress and corporate performance. The Journal of Finance, 49(3), 1015–1040. https://doi.org/10.1111/j.1540-6261.1994.tb00086.x
  • Ozoguz, A., & Rebello, M. J. (2013). Information, competition, and investment sensitivity to peer stock prices. University of Texas at Dallas.
  • Palley, T. I. (1995). Safety in numbers: A model of managerial herd behavior. Journal of Economic Behavior and Organization, 28(3), 443–450. https://doi.org/10.1016/0167-2681(95)00046-1
  • Park, K., Yang, I., & Yang, T. (2017). The peer-firm effect on firm’s investment decisions. The North American Journal of Economics and Finance, 40, 178–199. https://doi.org/10.1016/j.najef.2017.03.001
  • Qin, X., Zhang, S., Liao, X., Niu, H., & Dnes, A. (2023). The peer contagion effects and firms’ innovation: Evidence from China. Managerial and Decision Economics, 44(2), 1004–1019. https://doi.org/10.1002/mde.3727
  • Rashid, A., & Said, A. F. (2021). Peer effects on investment decisions: Do industry leaders and young firms behave differently? Global Business Review, 25(3), 791–811. https://doi.org/10.1177/0972150921993674
  • Rauh, J. D., & Sufi, A. (2012). Explaining corporate capital structure: Product markets, leases, and asset similarity. Review of Finance, 16(1), 115–155. https://doi.org/10.1093/rof/rfr023
  • Ren, X., Zeng, G., & Sun, X. (2023). The peer effect of digital transformation and corporate environmental performance: Empirical evidence from listed companies in China. Economic Modelling, 128, 106515. https://doi.org/10.1016/j.econmod.2023.106515
  • Scharfstein, D. S., & Jeremy, C. S. (1990). Herd behavior and investment. The American Economic Review, 80(3), 465–479.
  • Seo, H. (2021). Peer effects in corporate disclosure decisions. Journal of Accounting and Economics, 71(1), 101364. https://doi.org/10.1016/j.jacceco.2020.101364
  • Shyam-Sunder, L., & Myers, S. C. (1999). Testing static tradeoff against pecking order models of capital structure. Journal of Financial Economics, 51(2), 219–244. https://doi.org/10.1016/S0304-405X(98)00051-8
  • Smith, D. J., Chen, J., Anderson, H. D., & Cahan, S. (2015). The influence of firm financial position and industry characteristics on capital structure adjustment. Accounting & Finance, 55(4), 1135–1169. https://doi.org/10.1111/acfi.12083
  • Stigler, G. J. (1968). Price and non-price competition. Journal of Political Economy, 76(1), 149–154. https://doi.org/10.1086/259391
  • Thakor, R. T., Merton, R. C., & Cohen, L. (2023). Trust, transparency, and complexity. The Review of Financial Studies, 36(8), 3213–3256. https://doi.org/10.1093/rfs/hhad011
  • Valta, P. (2012). Competition and the cost of debt. Journal of Financial Economics, 105(3), 661–682. https://doi.org/10.1016/j.jfineco.2012.04.004
  • Zaighum, I., & Abd Karim, M. Z. (2019). Peer effects, financial decisions and industry concentration: A review. SEISENSE Journal of Management, 2(2), 13–21. https://doi.org/10.33215/sjom.v2i2.116
  • Zaighum, I., Aman, A., & Karim, M. Z. B. A. (2024). Do peers and national culture matter for capital structure decisions of emerging market corporations? Global Business Review, 09721509241238537. https://doi.org/10.1177/09721509241238537
  • Zhang, H., Feng, Y., Wang, Y., & Ni, J. (2024). Peer effects in corporate financialization: The role of fintech in financial decision making. International Review of Financial Analysis, 94, 103267. https://doi.org/10.1016/j.irfa.2024.103267