This study examines the association between reported intangible assets and corporate capital structure in an emerging-market context, with particular attention to how this association varies across tangibility environments.
Using a panel of 7,702 firm-year observations from 716 non-financial firms listed on the Stock Exchange of Thailand during 2005–2022, the study estimates multivariate regression models with firm-clustered robust standard errors. The analysis examines whether the reported intangible asset–leverage association differs across high- and low-tangibility environments and across manufacturing and service firms.
Reported intangible assets are positively associated with leverage. This association is stronger in high-tangibility environments and in manufacturing firms, consistent with the view that book intangibles and tangible operating assets may jointly support expected cash flows in emerging-market settings.
This study extends the literature by documenting how the relation between reported intangible assets and leverage differs across asset structures in an emerging economy. Rather than treating tangible and intangible assets as universal substitutes, this study shows that their relation may be complementary in settings where book intangibles are embedded within tangible operating systems and where financing institutions differ from those in developed markets.
