A Financing Constraints Paradox? Internal Finance and Capital Structure Link for Tourism Firms
Asian Emerging Market evidence
Bibliographic Data
| ID | 16914546 |
|---|---|
| Authors | Ömer Tuğsal Doruk (0000-0002-2382-1042, Adana Science and Technology University), Bi Irie Claude Martial Gohore (0000-0002-5741-5624, Adana Science and Technology University, corresponding author) |
| Year | 2024 |
| Volume | 14 |
| Issue | 4 |
| Publication date | 2024-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/21582440241265305 |
| OpenAlex | W4404209000 |
| Language | EN |
| References cited | 103 |
The aim of the study is to investigate the relationship between the internal financial and capital structure of an organization in the travel and tourism sector. The study shows how financial constraints on tourism companies affect their ability to finance themselves. The study also shows a relationship between tax shielding and financial leverage. This study analyzes panel data collected over a 21 year period, from 1998 to 2019, from over 100 publicly traded tourism companies in three Asian countries. A panel data methodology and the generalized method of moments estimation (GMM) were used in this empirical study. To support our hypothesis, using a generic method to evaluate parameter estimation will be our most effective method to improve the literature. Overall, the results show that financially stressed tourism firms use their option of debt-free tax avoidance to increase leverage. There is also a positive correlation between tax haven and leverage for firms with limited resources. The correlations between financial leverage and corporate debt supported by the results theoretically support the pecking order. By providing useful insights into the tax shielding of non-debt, which is significantly correlated with leverage for firms operating in tourism, this study closes the gap in firms’ capital structure decisions regarding access to finance. JEL Classification: G0, G01, L25
Business · Capital structure · Corporate Finance · Financial system · Information asymmetry · Internal financing · Tourism · Corporate Finance and Governance · Financial Reporting and Valuation Research · Working Capital and Financial Performance · Finance
Small and medium-size enterprises
The Determination of Financial Structure
Corporate financing and investment decisions when firms have information that investors do not have
The theory and practice of corporate finance
Some Tests of Specification for Panel Data
Theory of the firm
Financial Policy and Capital Structure Choice in U.K. SMEs
Determinants of small firm debt ratios
Small firm growth, access to capital markets and financial structure
The impact of firm and industry characteristics on small firms’ capital structure
No Deep Pockets
Determinants of corporate borrowing
Financial distress in the hospitality industry during the Covid-19 disaster
Economic policy uncertainty and corporate investment
Bureaucratic Leverage over Policy Choice
Leverage and Investment Cash Flow Sensitivity
Trade-Off Theory Versus Pecking Order Theory
| Citation velocity | historical |
|---|---|
| Highly cited | No |