IDEAS home Printed from https://ideas.repec.org/a/cup/eurrev/v27y2019i04p519-542_00.html
   My bibliography  Save this article

Debt-oriented Capital Structure and Economic Growth: Panel Evidence for OECD Countries

Author

Listed:
  • Shah, Syed Munawar
  • Abdul-Majid, Mariani
  • Karim, Zulkefly Abdul

Abstract

This paper examines the relationship between debt-oriented capital structure and economic growth by analysing a panel data of 16 European countries, based on the availability of data. We find that the corporate leverage in financial and non-financial corporations affects economic growth negatively. Furthermore, the results indicate that the leverage in non-financial corporations affects economic growth more than the leverage in financial corporations. This is due to the direct relationship between economic growth and the real sector and the fact that non-financial corporations in OECD countries hold more debt as compared with financial corporations.

Suggested Citation

  • Shah, Syed Munawar & Abdul-Majid, Mariani & Karim, Zulkefly Abdul, 2019. "Debt-oriented Capital Structure and Economic Growth: Panel Evidence for OECD Countries," European Review, Cambridge University Press, vol. 27(4), pages 519-542, October.
  • Handle: RePEc:cup:eurrev:v:27:y:2019:i:04:p:519-542_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1062798719000139/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:eurrev:v:27:y:2019:i:04:p:519-542_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/erw .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.