Template-Type: ReDIF-Paper 1.0
Author-Name: de Jong, A.
Author-Name-Last: de Jong
Author-Name-First: Abe
Author-Name: Kabir, R.
Author-Name-Last: Kabir
Author-Name-First: Rezaul
Author-Name: Nguyen, T.T.
Author-Name-Last: Nguyen
Author-Name-First: Thuy Thu
Title: Capital Structure around the World: The Roles of Firm- and Country-Specific Determinants
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 firm-specific factors. 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.
Creation-Date: 2007-09-11
File-URL: https://repub.eur.nl/pub/10517/ERS-2007-058-F&A.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2007-058-F&A
Classification-JEL: G3, G30, M
Keywords: Capital structure, country-specific factors, firm-specific factors, international evidence, leverage
Handle: RePEc:ems:eureri:10517