Technology firms and capital structure adjustment: Application of two-step system generalised method of moments

Q3 Economics, Econometrics and Finance

Applied Econometrics Pub Date : 2023-01-01 DOI:10.22394/1993-7601-2023-70-34-54

T. Gopane, Tanyaradzwa Gandanhamo, J. Mabejane

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引用次数: 0

Abstract

The study asks whether technology firms adjust their capital structures towards predetermined targets, and if so, at what speed? Also, is there an intra‐industry leverage‐level effect? The study empirically evaluates the listed technology firms in South Africa’s Johannesburg Stock Exchange (JSE). Methodologically, a generalised method of moments (GMM) is em‐ ployed on 34 firms over 21 years (1999–2019), resulting in a sample size of 714 observations. The results show that technology firms adjust their debt‐equity ratios towards target levels with speed above other industries at 45 to 57%. A comparison with prior research shows that this adjustment pace is consistent with the experience of technology firms in Asian emerging markets but differs markedly from that of developed economies. These results support the literature observation that technology is characterised differently in less developed economies, yet research on technology firms’ capital structure dynamics is scant. The results of this study should enlighten industrialists, investors, and policymakers involved with technology industries. Intuitively, the partial capital adjustment process should play an essential role in project financing decisions. Maintaining optimal capital adjustment speeds should lead to better industrial activity like maximised innovation and technology diffusion.

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科技企业与资本结构调整:两步系统广义矩量法的应用

该研究询问科技公司是否会朝着预定目标调整资本结构，如果是，调整的速度是多少?此外，是否存在行业内杠杆水平效应?本研究对南非约翰内斯堡证券交易所(JSE)的上市科技公司进行了实证评估。在方法上，在21年(1999-2019)期间对34家公司采用了广义矩量法(GMM)，得到了714个观察值的样本量。结果表明，科技公司将其债务-权益比率调整到目标水平的速度高于其他行业，为45%至57%。与先前研究的比较表明，这种调整速度与亚洲新兴市场科技公司的经验一致，但与发达经济体的情况明显不同。这些结果支持了文献观察，即技术在欠发达经济体中具有不同的特征，但对技术公司资本结构动态的研究却很少。这项研究的结果应该启发与技术产业有关的工业家、投资者和政策制定者。从直观上看，部分资本调整过程应该在项目融资决策中发挥重要作用。保持最优的资本调整速度应该会带来更好的工业活动，比如最大化的创新和技术扩散。

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来源期刊

Applied Econometrics Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： The Journal of Applied Econometrics is an international journal published bi-monthly, plus 1 additional issue (total 7 issues). It aims to publish articles of high quality dealing with the application of existing as well as new econometric techniques to a wide variety of problems in economics and related subjects, covering topics in measurement, estimation, testing, forecasting, and policy analysis. The emphasis is on the careful and rigorous application of econometric techniques and the appropriate interpretation of the results. The economic content of the articles is stressed. A special feature of the Journal is its emphasis on the replicability of results by other researchers. To achieve this aim, authors are expected to make available a complete set of the data used as well as any specialised computer programs employed through a readily accessible medium, preferably in a machine-readable form. The use of microcomputers in applied research and transferability of data is emphasised. The Journal also features occasional sections of short papers re-evaluating previously published papers. The intention of the Journal of Applied Econometrics is to provide an outlet for innovative, quantitative research in economics which cuts across areas of specialisation, involves transferable techniques, and is easily replicable by other researchers. Contributions that introduce statistical methods that are applicable to a variety of economic problems are actively encouraged. The Journal also aims to publish review and survey articles that make recent developments in the field of theoretical and applied econometrics more readily accessible to applied economists in general.