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Determinants of the Capital Structures of European SMEs

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Author Info
Graham C. Hall
Patrick J. Hutchinson
Nicos Michaelas
Abstract

The aim of this paper is to examine the degree to which the determinants of SMEs' capital structures differ between European countries. The study is based on data for four thousand SMEs, five hundred from each of eight European countries. Regressions were run using short-term and long-term debt as dependent variables and profitability, growth, asset structure, size and age as independent variables. A key feature of this paper is the use of restricted and unrestricted regressions to isolate the country-effect from the firm-specific-effect. The results show that variations are likely to be due to country differences as well as firm-specific ones. Copyright Blackwell Publishers Ltd, 2004.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.0306-686X.2004.00554.x
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Article provided by Blackwell Publishing in its journal Journal of Business Finance & Accounting.

Volume (Year): 31 (2004-06)
Issue (Month): 5-6 ()
Pages: 711-728
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Handle: RePEc:bla:jbfnac:v:31:y:2004-06:i:5-6:p:711-728

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  1. Jong, A. de & Kabir, R. & Nguyen, T.T., 2007. "Capital Structure around the World: The Roles of Firm- and Country-Specific Determinants," Research Paper ERS-2007-058-F&A Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
  2. Degryse, H.A. & Goeij, P. C. de & Kappert, P., 2009. "The Impact of Firm and Industry Characteristics on Small Firms' Capital Structure: Evidence from Dutch Panel Data," Discussion Paper 2009-21, Tilburg University, Center for Economic Research. [Downloadable!]
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