Loading...
Please wait, while we are loading the content...
Similar Documents
To what extent do macroeconomic conditions and firm characteristics affect zero-leverage decisions of firms?
| Content Provider | Semantic Scholar |
|---|---|
| Copyright Year | 2017 |
| Abstract | This study contributes to the existing literature on capital structure. It addresses why some firms have no leverage in their capital structures despite the potential benefits of debt financing. While analyzing 978 US corporations over the period of 1962-2015 have we found that zero-leverage firms either have access to leverage financing, or not. We further observed in our sample that macro-economic sensitivity have a greater impact among financially unconstrained firms compared the constrained counterparts. Growth of financial intermediaries and government debt enhances the chance of a firm to neglect leverage financing. Finally did we also found new evidence that firms invest less after periods where government debt is high and that this observation is stronger among the unconstrained subsample. ERASMUS UNIVERSITY ROTTERDAM Erasmus School of Economics Student information: Name Student: Quincy Vaz Student ID number: 434385 Master Specialization: Financial Economics Field: Corporate Finance & Governance Master Thesis Financial Economics (16 EC) Supervisor: Mr. Sjoerd van den Hauwe Second Assessor: Dr. Jan Lemmen Date final version: 21-06-2017 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://thesis.eur.nl/pub/38227/Vaz-Q.M.-434385-.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
