This paper examines the impact of industrial policy on capital structure based on a partial adjustment model of capital structure that incorporates financial flexibility, macroeconomic conditions, economic development as well as firm-level factors. The issue is investigated in the context of Taiwan where industrial policy is widely considered to have played a strategic role in its economic succ...

This study test the impact of financial markets development on capital structure of firms listed on Ho Chi Minh stock exchange (HOSE). Base on the financial data of 116 firms listed on HOSE, in the period from 2009 to 2015 and generalized least square regression method, this study shows that market capitalization is positive relationship with debt rate in capital structure, volume of shares tra...

We develop a tractable two-country overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively poor to relatively rich countries, while foreign direct investment flows in the opposite direction; net capital flows go from poor to rich countries; d...

We develop a tractable two-country overlapping-generations model and show that cross-country differences in financial development can explain three recent empirical patterns of international capital flows: Financial capital flows from relatively poor to relatively rich countries, while foreign direct investment flows in the opposite direction; net capital flows go from poor to rich countries; d...

In this paper we resolve the long standing Feldstein-Horioka (FH, 1980) puzzle dynamically and explain it statistically. We first study the dynamic properties of capital mobility, and re-estimate the evolution of the FH coefficient using a time-varying-parameter model for each of 67 countries from 1970 to 2009. We find that the trend of the FH coefficient is highly consistent with increased glo...

This paper examines the optimal financial markets liberalization policy for a large country in a two-country general equilibrium production economy. In our model, household’s portfolio choice is modeled separately from firm’s investment decision and financial markets play an important role in the allocation of capital between production technologies. We find that the type of production technolo...

Purpose – The purpose of this paper is to examine the relationship between firms’ value drivers and their intellectual capital (IC). Design/methodology/approach – The health care sector (GICS 35) firms listed in the S&P500 were used to build a research censoring Tobit model by adopting financial data to determine value drivers. Findings – The results of the study show that innovation capital, c...

Every modern company should measure the value of its intellectual capital and to report to complement the traditional annual balance sheets. The purpose of this work is to measure the intellectual capital in an Algerian company (or production system) using the Weightless Wealth Tool Kit (WWTK). The results of the measurement of intellectual capital are supplemented by traditional financial rati...

We examine the effect of financial integration on capital stocks and income per capita, explicitly taking into account the division of output between tradable and non-tradable goods. Capital per worker in a financially integrated country is shown to depend on the size and relative capital-intensity of the tradable sector. Using a panel of 67 countries over the period 1976-1999, we show a weakly...