The influence of firm, industry and concentrated ownership on dynamic capital structure decision in emerging market

Purpose This study aims to evaluate the impact of firm, industry level determinants and ownership concentration on dynamic capital structure decision in Indonesia analyses governing theories. Design/methodology/approach uses panel model generalized method moments-System (one-step two-step) by using a data from 2000 2014 examine relationship between leverage. The results are robust various definitions leverage, heterogeneity, autocorrelation, multicollinearity endogeneity concern. Findings Growing firms operating highly concentrated use high debt, taking advantage tax shield (trade-off theory). However, if environment, they take less debt as avoid bankruptcy risk. Firms opt for financing perhaps act controlling mechanism mitigate agency conflicts that may exist large shareholders minority. Aged profitable with tangible intangible assets liquidity environment follow pecking order theory. Research limitations/implications does not perform each regression individually. All industries pooled together, main focus this is factors affecting leverage general without giving particular attention individual industry. Originality/value insights characteristics novel especially Indonesia, thus fill gap literature.