Purpose – This paper aims to test the significance of unobservable firm-specific effects on a capital structure model. Design/methodology/approach – The paper employs the restricted least squares method to test the significance of unobservable firm-specific effects in a fixed effects model...

Purpose – The purpose of this paper is to disentangle the driving force of pyramidal firms' capital structure from nine East Asian economies. Design/methodology/approach – To disentangle the driving force, this paper develops a new theoretical framework for the pyramidal firms'. Using panel...