Determinants of Financial Leverage of Development Companies

The relevance of this study lies in the fact that the study of these issues is important for understanding the conflict of interests between owners and managers, as well as for the relationship of the company and its non-financial steak holders. In this paper, the market of Asian development companies will be considered as an analyzed market. The practical significance of the work lies in the fact that the results of the thesis can be used by managers of real estate development companies in Asian countries to make better decisions regarding the choice of capital structure. The purpose of this work is to develop a model that determines the formation of a capital structure by real estate development companies in Asia. For the first time, an analysis of the determinants of the capital structure of development companies in the Asian market was carried out. Both traditional determinants and original factors reflecting the ownership structure and macroeconomic indicators of the country are considered. Developed various models of panel data with fixed effects, not previously used in research on development companies, tested various specifications of models. The factors affecting the capital structure of companies in emerging financial markets are identified.