Capital structure around the world: The roles of firm- and country-specific determinants

Citation

de Jong A, Kabir R & Nguyen TT (2008) Capital structure around the world: The roles of firm- and country-specific determinants. Journal of Banking and Finance, 32 (9), pp. 1954-1969. https://doi.org/10.1016/j.jbankfin.2007.12.034

Abstract
Abstract: We analyze the importance of firm-specific and country-specific factors in the leverage choice of firms from 42 countries around the world. Our analysis yields two new results. First, we find that firm-specific determinants of leverage differ across countries, while prior studies implicitly assume equal impact of these determinants. Second, although we concur with the conventional direct impact of country-specific factors on the capital structure of firms, we show that there is an indirect impact because country-specific factors also influence the roles of firm-specific determinants of leverage. Copyright 2008 ElsevierCopyright of Journal of Banking & Finance is the property of Elsevier Science Publishing Company, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Keywords
ABSTRACTS; ACCURACY; analysis; Banking; BUSINESS; CAPITAL; CAPITAL structure; choice; codes; Copyright; Corporations; CORPORATIONS -- Finance; CORPORATIONS -- Valuation; Countries; email; factors; FINANCE; financial; FINANCIAL leverage; FINANCIAL management; firm; firms; IMPACT; International; INTERNATIONAL finance; LONG-TERM; LONG-term business financing; Management; NETHERLANDS; NUMBER; properties; Publishing; Research; Role; Roles; Science; SITES; Stirling; Structure; United Kingdom; universities; VALUATION; WORLD

Journal
Journal of Banking and Finance: Volume 32, Issue 9