Financial liberalisation and the dynamics of firm leverage in a transitional economy: evidence from South Africa

Financial liberalisation and the dynamics of firm leverage in a transitional economy: evidence from South Africa

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This paper examines the dynamics of corporate capital structures for listed non-financial firms in South Africa.The dynamic models of capital structure have been utilised to document several findings iphone 14 price arizona of empirical significance.First, transaction costs reduce dramatically in the post liberalisation regime, and the associated speed of adjustment is more pronounced, and statistically significant for the post liberalisation epoch.Second, financial liberalisation has a significant impact on the capital structure speed of adjustment.Third, the il barone wine results confirm most of the theoretical predictions of capital structure theories; however, the relationship is more significant in the post liberalised regime.

Finally, new evidence has been revealed on what determines the debt maturity structure of firms in a transitional economy.