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The Determinants of Capital Structure: Some Evidence from Banks

Listed author(s):
  • Heider, Florian
  • Gropp, Reint

This paper documents that standard cross-sectional determinants of firm leverage also apply to the capital structure of large banks in the United States and Europe. We find a remarkable consistency in sign, significance and economic magnitude. Like non-financial firms, banks appear to have stable capital structures at levels that are specific to each individual bank. The results suggest that capital requirements may only be of second-order importance for banks? capital structures and confirm the robustness of current corporate finance findings in a holdout sample of banks.

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File URL: https://www.econstor.eu/bitstream/10419/24709/1/dp08015.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-015.

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Date of creation: 2008
Handle: RePEc:zbw:zewdip:7224
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