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Capital Structure Dynamics in UK and Continental Europe

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  • Gabrielle Wanzenried
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    Abstract

    This paper analyzes capital structure determinants of UK and continental European firms. Besides considering firmspecific characteristics, it investigates the impact of different corporate governance related institution- and marketspecific aspects on the capital structure choice. The dynamic framework allows to analyze short- and longterm adjustments and to relate them to firm- and systemspecific characteristics. Our data contain balance sheet and profit&loss account data of 167 European firms from 1988 to 1998. From our panel data regressions we find significant differences in the capital structure choice between the firms of the considered corporate governance systems.

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    File URL: http://www.vwl.unibe.ch/papers/dp/dp0209.pdf
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    Bibliographic Info

    Paper provided by Universitaet Bern, Departement Volkswirtschaft in its series Diskussionsschriften with number dp0209.

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    Date of creation: Sep 2002
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    Handle: RePEc:ube:dpvwib:dp0209

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    Related research

    Keywords: Capital structure; Corporate governance; Panel data; Dynamic analysis;

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    Cited by:
    1. L. de Haan & E. Sterken, 2000. "Capital Structure, Corporate Goverance, and Monetary Policy: Firm-Level Evidence for the Euro Area," WO Research Memoranda (discontinued) 637, Netherlands Central Bank, Research Department.
    2. Ralph de Haas & Marga Peeters, 2004. "The Dynamic Adjustment towards Target capital Structures of Firms in," DNB Staff Reports (discontinued) 123, Netherlands Central Bank.
    3. R.T.A. de Haas & H.M.M. Peeters, 2004. "Firms' dynamic adjustment to target capital structures in transition economies," WO Research Memoranda (discontinued) 761, Netherlands Central Bank, Research Department.
    4. Carmen Cotei & Joseph Farhat & Benjamin A. Abugri, 2011. "Testing trade-off and pecking order models of capital structure: does legal system matter?," Managerial Finance, Emerald Group Publishing, vol. 37(8), pages 715-735, August.

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