Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange
Thesis (PhD)--University of Pretoria, 2012.
Saved in:
| Other Authors: | |
|---|---|
| Format: | Thesis |
| Published: |
University of Pretoria
2013
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613598298144768 |
|---|---|
| access_status_str | Open Access |
| author2 | Vermaak, Frans N.S. |
| author_browse | Vermaak, Frans N.S. |
| author_facet | Vermaak, Frans N.S. |
| collection | Thesis |
| dc_rights_str_mv | © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Thesis (PhD)--University of Pretoria, 2012. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/23951 |
| institution | University of Pretoria (South Africa) |
| last_indexed | 2026-06-10T12:38:41.391Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2013 |
| publishDateRange | 2013 |
| publishDateSort | 2013 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/23951 Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange Vermaak, Frans N.S. Wolmarans, H.P. (Hendrik Petrus) chimwemwe.chipeta@wits.ac.za Chipeta, Chimwemwe Lifting of international sanctions Financial liberalisation Capital structure UCTD Thesis (PhD)--University of Pretoria, 2012. This thesis examines the impact of financial liberalisation on the capital structure of non-financial firms listed on the Johannesburg Stock Exchange (JSE). The research hypotheses have been formulated and tested by using various econometric estimation procedures. The empirical assessment begins by resolving some methodological issues relating to the dating of financial liberalisation and the measurement of leverage. Next, a panel of 100 non-financial firms is constructed for the period 1989 to 2007. The pooled Ordinary Least Squares, fixed (within), and random effects (Generalised Least Squares) models are used to estimate the impact of various aspects of financial liberalisation on firm capital structure. Robustness checks are performed by using the instrumental variable technique and the Arellano and Bond (1991: 277) two-step Generalised Method of Moments (GMM) procedure. Irrespective of the procedure used, the lifting of international sanctions and stock market liberalisation is associated with a reduction in leverage for all sets of firms. Capital account liberalisation causes firms to access more debt, and there is mild support for domestic financial sector liberalisation. Stock market liberalisation provides avenues for firms to increase their debt maturity structure. The size of the stock market is positively associated with leverage, and banking sector development is negatively correlated to leverage. The effect of financial liberalisation is more pronounced for larger firms, suggesting that the process of financial liberalisation causes a wedge between small and large firms. Furthermore, regime dummies are interacted with firm specific determinants of capital structure. The notable facts arising out of the interactive dummy variable exercise reveal that the lifting of international sanctions and stock market liberalisation cause significant structural shifts in the profitability, growth and tax rate variables. This is evident for the book and market value of the debt to equity ratio. The results of the dynamic model of capital structure document evidence of transaction costs for both the pre and post liberalisation regime. However, it appears that transaction costs reduce dramatically in the post liberalisation regime. The associated coefficient of adjustment increases accordingly. This suggests that a developed financial system promotes competition amongst the issuers of capital, thereby lowering borrowing and transaction costs. The empirical significance of firm specific determinants in a closed economy appears to be weaker than that of the post liberalised regime. Furthermore, firm size speeds up the adjustment to the target level of leverage for firms operating in both the pre and post liberalisation regimes. Finally, the results confirm most of the theoretical predictions of capital structure theories. Financial Management unrestricted 2013-09-06T16:13:25Z 2012-04-24 2013-09-06T16:13:25Z 2012-04-05 2012-04-24 2012-04-13 Thesis Chipeta C 2012, Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange, PhD thesis, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/23951 > C12/4/49/ag http://hdl.handle.net/2263/23951 http://upetd.up.ac.za/thesis/available/etd-04132012-115243/ © 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf application/pdf application/pdf application/pdf application/pdf application/pdf application/pdf application/pdf application/pdf University of Pretoria |
| spellingShingle | Lifting of international sanctions Financial liberalisation Capital structure UCTD Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title | Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title_full | Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title_fullStr | Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title_full_unstemmed | Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title_short | Financial liberalisation and the capital structure of firms listed on the Johannesburg stock exchange |
| title_sort | financial liberalisation and the capital structure of firms listed on the johannesburg stock exchange |
| topic | Lifting of international sanctions Financial liberalisation Capital structure UCTD |
| url | http://hdl.handle.net/2263/23951 http://upetd.up.ac.za/thesis/available/etd-04132012-115243/ |