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Determinants of Corporate Capital Structure: Evidence from Non-financial Listed French Firms
| Content Provider | Semantic Scholar |
|---|---|
| Author | Correia, A. Cerqueira, Antonio Melo Brandão, Elísio |
| Copyright Year | 2015 |
| Abstract | This paper analyses firms’ characteristics that influence managers’ decisions about how to finance their companies. It also aims to study which financial theory better explains those decisions that affect the capital structure of the firms. Our empirical study uses panel data and OLS estimations with cross-section fixed effects and year dummy variables. The sample includes 436 non-financial listed French firms, over the period from 2007 to 2013 (3052 firm-year observations). In the empirical study to test the results’ sensitivity to the use of debt with different maturities we use two regressions and hence two dependent variables: the total debt and the long term debt. The independent variables that we use are the tangibility of assets, the profitability, the firm size, the growth opportunities and the non-debt tax shields. All independent variables exhibit explanatory power and the results are robust to the use of debt with different maturities. The empirical results show that there is no leading theory in explaining managers’ decisions about how to finance firms. Additionally, the sample was divided into pre-crisis (2007-2008) and crisis (2009-2013) periods, the results show a substantial change of the influence of the tangibility of assets, as a result of the financial crisis. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://wps.fep.up.pt/wps/wp566.pdf |
| Alternate Webpage(s) | https://repositorio-aberto.up.pt/bitstream/10216/81384/2/37154.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
