English
 
User Manual Privacy Policy Disclaimer Contact us
  Advanced SearchBrowse

Item

ITEM ACTIONSEXPORT

Released

Paper

Determinants of Capital Structure in Non-Financial Companies

MPS-Authors
/persons/resource/persons136153

Kühnhausen,  Fabian
MPI for Innovation and Competition, Max Planck Society;

External Ressource
Fulltext (public)
There are no public fulltexts stored in PuRe
Supplementary Material (public)
There is no public supplementary material available
Citation

Kühnhausen, F., & Stieber, H. W. (2014). Determinants of Capital Structure in Non-Financial Companies. Münchener Wirtschaftswissenschaftliche Beiträge (VWL), 2014-38.


Cite as: http://hdl.handle.net/11858/00-001M-0000-0024-3B50-9
Abstract
In this paper, we evaluate firm-, industry- and country-specific factors determining a firm’s capital structure. The empirical validity of several capital structure theories has been ambiguous so far. We shed light on the main drivers of leverage and depict differences in industry and country characteristics. Using a short panel data set with a large cross-section, we are able to show that firm size, industry leverage, industry growth and tax shield positively affect leverage ratios, while profitability and liquidity have negative impacts. Moreover, our model is an improvement over Rajan and Zingales’ (1995) four-factor core model in terms of explaining data variation. The results are robust against different panel estimators, decompositions and over time.