Dynamic optimal capital structure and technical change
2004 (English)In: Structural Dynamics and Economic Change, ISSN 0954-349x, Vol. 15, no 4, 449-468 p.Article in journal (Refereed) Published
The importance of capital structure is explored by comparing existing archetypes of financial systems through a new methodological application. Differences in firms’ cost of capital show that capital structure is relevant in R&D and other investment decisions. The conclusions are that (1) there are large and also unexpected cross-country differences in determinants to optimal capital structure; (2) observed leverage is often different from target in both equity (or stock market based)- and debt (or bank based)-dominated systems; and (3) faster speed towards the target is observed in the equity-based system indicating a higher flexibility.
Place, publisher, year, edition, pages
2004. Vol. 15, no 4, 449-468 p.
Capital structure; Panel data; Financial markets; Cross-country comparison
Other Mechanical Engineering
IdentifiersURN: urn:nbn:se:kth:diva-13110DOI: 10.1016/j.strueco.2003.05.001ScopusID: 2-s2.0-8144221751OAI: oai:DiVA.org:kth-13110DiVA: diva2:320915
QC 201005272010-05-272010-05-272010-05-27Bibliographically approved