Impact of goodwill on firms’ capital structure in developing countries
Goodwill assets are considered to be a building block to reduce some concerns surrounding the capital structure puzzle. This article investigates goodwill assets as a determinant of firms' capital structure using 4912 listed firms from 23 developing countries. This article applies the two-step...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Rajshahi
2020
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| Online Access: | http://psasir.upm.edu.my/id/eprint/89284/ http://psasir.upm.edu.my/id/eprint/89284/1/DEBT.pdf |
| _version_ | 1848860815666446336 |
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| author | Thakur, Oli Ahad Amin Noordin, Bany Ariffin Tunde, Matemilola Bolaji Razman, Ahmed Satiawan, Doddy |
| author_facet | Thakur, Oli Ahad Amin Noordin, Bany Ariffin Tunde, Matemilola Bolaji Razman, Ahmed Satiawan, Doddy |
| author_sort | Thakur, Oli Ahad |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Goodwill assets are considered to be a building block to reduce some concerns surrounding the capital structure puzzle. This article investigates goodwill assets as a determinant of firms' capital structure using 4912 listed firms from 23 developing countries. This article applies the two-step system GMM as the main estimation technique because it mitigates the endogeneity problem. Moreover, it applies the Fixed Effect and Random Effect models as robust checks. The results show that goodwill assets are significantly and positively related to firms' capital structure in the two-step system GMM model as well as in the Fixed Effect and Random Effect models. Based on these results, goodwill assets emerge as a potential determinant of capital structure, which implies that goodwill assets could serve as collateral to obtain debt capital. |
| first_indexed | 2025-11-15T12:51:14Z |
| format | Article |
| id | upm-89284 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T12:51:14Z |
| publishDate | 2020 |
| publisher | Rajshahi |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-892842021-09-20T11:53:55Z http://psasir.upm.edu.my/id/eprint/89284/ Impact of goodwill on firms’ capital structure in developing countries Thakur, Oli Ahad Amin Noordin, Bany Ariffin Tunde, Matemilola Bolaji Razman, Ahmed Satiawan, Doddy Goodwill assets are considered to be a building block to reduce some concerns surrounding the capital structure puzzle. This article investigates goodwill assets as a determinant of firms' capital structure using 4912 listed firms from 23 developing countries. This article applies the two-step system GMM as the main estimation technique because it mitigates the endogeneity problem. Moreover, it applies the Fixed Effect and Random Effect models as robust checks. The results show that goodwill assets are significantly and positively related to firms' capital structure in the two-step system GMM model as well as in the Fixed Effect and Random Effect models. Based on these results, goodwill assets emerge as a potential determinant of capital structure, which implies that goodwill assets could serve as collateral to obtain debt capital. Rajshahi 2020 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/89284/1/DEBT.pdf Thakur, Oli Ahad and Amin Noordin, Bany Ariffin and Tunde, Matemilola Bolaji and Razman, Ahmed and Satiawan, Doddy (2020) Impact of goodwill on firms’ capital structure in developing countries. The Empirical Economics Letters, 19 (6). 563 - 569. ISSN 1681-8997 https://www.researchgate.net/publication/342734350 |
| spellingShingle | Thakur, Oli Ahad Amin Noordin, Bany Ariffin Tunde, Matemilola Bolaji Razman, Ahmed Satiawan, Doddy Impact of goodwill on firms’ capital structure in developing countries |
| title | Impact of goodwill on firms’ capital structure in developing countries |
| title_full | Impact of goodwill on firms’ capital structure in developing countries |
| title_fullStr | Impact of goodwill on firms’ capital structure in developing countries |
| title_full_unstemmed | Impact of goodwill on firms’ capital structure in developing countries |
| title_short | Impact of goodwill on firms’ capital structure in developing countries |
| title_sort | impact of goodwill on firms’ capital structure in developing countries |
| url | http://psasir.upm.edu.my/id/eprint/89284/ http://psasir.upm.edu.my/id/eprint/89284/ http://psasir.upm.edu.my/id/eprint/89284/1/DEBT.pdf |