TY - JOUR
T1 - Capital structure around the world
T2 - The roles of firm- and country-specific determinants
AU - de Jong, Abe
AU - Kabir, Rezaul
AU - Nguyen, Thuy Thu
PY - 2008
Y1 - 2008
N2 - 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.
AB - 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.
U2 - 10.1016/j.jbankfin.2007.12.034
DO - 10.1016/j.jbankfin.2007.12.034
M3 - Article
VL - 32
SP - 1954
EP - 1969
JO - Journal of banking & finance
JF - Journal of banking & finance
SN - 0378-4266
IS - 9
ER -