The Effect of Intangible Assets and Goodwill on Capital Structure of The Companies Listed on The Stock Exchange of Thailand in SETESG Index
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Abstract
The objective of this research is to study capital structure and the effect of intangible assets and goodwill on capital structure of listed companies on the Stock Exchange of Thailand in SETESG index. The study examines data from a sample group during year 2019 to 2023, totaling 457 samples. According to multiple regression analysis, the researchers find that total intangible assets and intangible assets excluding goodwill have a statistically significant positive association with the company's capital structure. However, the researchers do not find an association between the company's goodwill and capital structure.
This research supports Pecking Theory and Signaling Theory by demonstrating that intangible assets of companies listed in the SETESG index can be used as collateral assets, like tangible assets. Companies with a high proportion of intangible assets often select debt financing instead of shareholder funding, possibly due to lower costs and advantage from tax savings. Furthermore, companies with a high proportion of intangible assets use debt financing to signal the low risk of their intangible assets.
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