This paper identifies factors determining capital structure and estimates the speed at which firms adjust to optimal debt in Malaysian and Indonesian manufacturing firms. It uses the difference Generalized Method of Moments (GMM) estimator and the partial adjustment model in a sample of 141 Malaysian and 96 Indonesian firms, which include many of the major manufacture companies in these economies. The results suggest the existence of dynamic capital structure in both countries, but differences in adjustment speed towards optimal debt and factors affecting the optimal debt levels are evident between these countries. Firm-specific factors such as tangibility of assets, non-debt tax shield, and profitability significantly affect optimal debt in both countries. However, most countryspecific factors are insignificant determinants, GDP in Malaysia being the sole exception. The findings of this study are helpful for corporate managers, policymakers, and regulatory authorities in monitoring the amount of debt used by the firms and their adjustment speed towards target debt to avoid the bankruptcies. Financial reforms can be worked out in these economies to better support the firms in use of optimal debt.

中文翻译：

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资本结构和调整速度：来自印度尼西亚和马来西亚的上市制造公司的证据

本文确定了决定资本结构的因素，并估计了公司调整为马来西亚和印度尼西亚制造业公司的最佳债务的速度。它在141家马来西亚公司和96家印尼公司的样本中使用差异化的广义矩法（GMM）估计器和局部调整模型，其中包括这些经济体中的许多主要制造业公司。结果表明，这两个国家都存在动态的资本结构，但在这两个国家之间，对最优债务的调整速度和影响最优债务水平的因素存在明显差异。特定于公司的因素，例如资产的有形性，非债务税盾和获利能力，对这两个国家的最佳债务都有重大影响。但是，大多数特定国家/地区的因素都是无关紧要的决定因素，马来西亚的GDP是唯一的例外。这项研究的结果有助于公司经理，政策制定者和监管机构监控公司所使用的债务数量及其向目标债务的调整速度，从而避免破产。可以在这些经济体中进行金融改革，以更好地支持公司使用最佳债务。