Capital Structure Dynamics in UK and Continental Europe
AbstractThis 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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Capital structure; Corporate governance; Panel data; Dynamic analysis;
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
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
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