An Empirical Analysis of Capital Structure Decisions in Dutch Firms
AbstractAbstract: This Ph.D. thesis investigates capital structure decisions in Dutch firms. Firms are faced with the choice from a variety of sources of financing for the funding of their activities. These choices determine the firms' capital structures. Building on the well known theorems of Modigliani and Miller, theoretical contributions provided many potential explanations for the choice between debt and equity. Early studies involve taxation and bankruptcy costs. Recently, theoretical contributions are based on agency oblems, which are caused by asymmetric information and divergent interests. This thesis consists of three studies that aim to test the empirical relevance of a selection of theories for Dutch exchange-listed firms. In the third study, a novel empirical a roach on the basis of questionnaires is advocated and implemented. The results of the tests show the relevance of theories of bankruptcy costs and tax benefits that are associated with debt. No evidence is found for the existence of a relation between cap al structure and the manifestation of agency problems between the providers of debt and equity. On the contrary, agency problems between managers and providers of equity are found to play a prominent role in the Netherlands.
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Bibliographic InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-80017.
Date of creation: 1999
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Publication status: Published
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Web page: http://www.tilburguniversity.edu/
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- 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,"
2009-21, Tilburg University, Center for Economic Research.
- 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 2009-009, Tilburg University, Tilburg Law and Economic Center.
- Kabir, Rezaul, 2003. "Corporate Financing in The Netherlands: Some Empirical Evidence," EIFC - Technology and Finance Working Papers 32, United Nations University, Institute for New Technologies.
- Jong, A. de & DeJong, D.V. & Mertens, G.M.H. & Wasley, C., 2000. "The Role of Self-Regulation in Corporate Governance: Evidence from the Netherlands," Discussion Paper 2000-59, Tilburg University, Center for Economic Research.
- Hans Degryse & Peter Goeij & Peter Kappert, 2012. "The impact of firm and industry characteristics on small firms’ capital structure," Small Business Economics, Springer, vol. 38(4), pages 431-447, May.
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