Hierarchical determinants of capital structure
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Artigo
Date
2011
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Journal of Banking and Finance
item.page.citationsscopus
199
Authors
Kayo E.K.
Kimura H.
Kimura H.
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Journal Title
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Volume Title
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Abstract
We analyze the influence of time-, firm-, industry- and country-level determinants of capital structure. First, we apply hierarchical linear modeling in order to assess the relative importance of those levels. We find that time and firm levels explain 78% of firm leverage. Second, we include random intercepts and random coefficients in order to analyze the direct and indirect influences of firm/industry/country characteristics on firm leverage. We document several important indirect influences of variables at industry and country-levels on firm determinants of leverage, as well as several structural differences in the financial behavior between firms of developed and emerging countries. © 2010 Elsevier B.V.