High debt companies' leverage determinants in Spain: A quantile regression approach
AbstractWith a severe debt overhang problem in Spain, either public or private, the analysis of the factors that influence companies' leverage in this country reveals essential, in particular for the high-indebted firms. This study benefits from the quantile regression approach advantages over the OLS method to analyze the leverage determinants for a large sample of companies for the 2001–2011 period depending on their level of indebtedness. This method reveals that for the highly-leveraged companies many factors are no longer significant and that cash flow variable is crucial if the companies would like to decrease their debt levels.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 36 (2014)
Issue (Month): C ()
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Web page: http://www.elsevier.com/locate/inca/30411
Quantile regressions; Capital structure; High-debt companies;
Find related papers by JEL classification:
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
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