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CHOICE OF FINANCING METHOD WITH MARKET TIMING AND
LIQUIDITY: EVIDENCE FROM AUSTRALIA
Silvia Zia Islam
B.B.A. (Honours) in Finance
University of Dhaka
A thesis submitted in fulfilment of the requirements for the degree of
Doctor of Philosophy
School of Economics, Finance and Marketing
Royal Melbourne Institute of Technology (RMIT) University
June 2009
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DECLARATION OF ORIGINALITY
I certify that except where due acknowledgement has been made, this thesis is the original
work of the author alone. The thesis has not been submitted previously, in whole or in part,
to qualify for any other academic award. The content of thesis is the result of work which
has been carried out since the official commencement date of approved research program;
and any editorial work, paid or unpaid, carried out by a third party is acknowledged.
Signed:
Silvia Zia Islam
June 2009
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ACKNOWLEDGEMENTS
The completion of a Doctor of Philosophy in any field requires perseverance, persistence,
determination, resilience and passion. The continuous process of review, re-assessment and
re-writing, is certainly a test of one, tenacity and desire to accomplish.
Achieving this goal of my life would not have been possible without many people.
The number is too large to mention each individually.
First, my heartfelt gratitude and respect goes to my principal supervisor Professor
Richard Heaney. He inspired me, guided me, motivated me and cajoled me. I thank him for
his patience, meticulousness and encouragement throughout my time as his student. His
door was open at all times and it seemed that he was always waiting to discuss my
problems. He has taught me the value of research and the value of attention to detail in
research. I would also like to express my sincere thanks to my second supervisor, Associate
Professor Dr Heather Mitchell for her continuous encouragement, assistance and cheerful
attitude. I would like to thank Sam Oliphant for providing me with her professional editing
service. Her 30 years of editing experience helps to ensure the completeness and
consistency of my thesis. Special thanks to my colleague, Dr Ashton De Silva who helped
me put that all-important and often illusive financial story to the results of my analyses.
There are always a few people who quietly providing advice such as, Professor
Sinclair Davidson at RMIT University. Professor Sinclair’s positive and constructive
feedback was extremely helpful. I thank Professor Benjamin Hermalin at The University of
California, Berkeley for his valuable opinions and comments while reviewing few chapters
of my thesis.
Further, I thank Professor Tony Naughton, Mr. Stewart Carter and Ms Prue Lamont
for their continuous support in many ways. Special thanks to Mr. Vineet Kapoor for his
support throughout the study period and help to get my data ready. I am also grateful for
the assistance provided by Cathy de Costa, Camille Tooman, Jenny Cameron, School
Liaison Librarian at RMIT University Australia.
I take great pleasure in thanking my mother, heavenly father and my brother who
instilled in me a long time ago the desire to achieve and the work ethic that ensures that I
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do. I would like to thank my relatives for their unconditional love and support throughout
my many years of study.
My heartfelt appreciation and thanks goes to my friends and colleagues. While all of
them are special, I will not be able to name them all here though I would like to convey my
warmest gratitude to Zarina Md Nor, Minh Phuong Doan, Sarod Khandaker, Meg Elkins,
Patricia Snare and Amir Hossein Sabet. They trusted even without comprehending and they
trusted me that I would accomplish the task that I set for myself. Appreciation goes to all
staff of the school of economics, finance and marketing at RMIT University for their
friendliness and homely atmosphere.
Most importantly, special thanks to my husband Dr F M Amirul Islam, Senior
Research Fellow at the University of Melbourne for his enormous, unending support, who
has helped me to develop my thesis and for his patience throughout the long period of my
study. Thanks to my beautiful son, Nabhan Ul-Islam who has been my world since the day
he was born, I am so blessed to have him by my side. His lovely smile, his sweet words his
enthusiasm, I cannot live without. “Thank you Darling, for your sacrifices and
unconditional love”.
Finally, above all, I thank and praise my Lord and Savior Allah, for all His blessing
and help to bring me to this stage.
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LIST OF CONFERENCE PAPERS BY THE CANDIDATE
RELEVANT TO THE THESIS
Islam, S., Heaney, R. 2007, ‘Impact of market timing on Australian capital structure’, 2007
AFAANZ Conference, http://www.afaanz.org/openconf/openconf.php
Islam, S., Heaney, R. 2009, ‘Market timing or growth opportunities’, European Financial
Management Association (EFMA): Annual Meetings 2009
http://www.efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETIN
GS/2009-milan/confpap09.shtml
