Publicação
The determinants of the capital structure of Spanish and Portuguese listed companies
| Resumo: | In order to analyse the convergence of capital structure decisions of Spanish and Portuguese listed firms, using dynamic estimators to analyse the effect of firm-specific and country-specific determinants, with a sample composed of and 67 Spanish listed non-financial Spanish listed firms and 35 Portuguese listed non-financial firms, for the period of analysis between 2008 and 2016. The results obtained indicate that capital structure decisions of Portuguese and Spanish listed companies converge in terms of transaction costs, however in greater magnitude for Portuguese companies, since the coefficient of adjustment of current debt towards the optimal level of leverage varies between 0.662 and 0.695 for Spanish firms and between 0.674 and 0.834 for Portuguese firms. The results also indicate a convergence in the behaviour of Spanish and Portuguese firms' financing decisions in the context of agency costs, as the results indicate the existence of a significant positive relationship between the tangibility of firms' assets. Similarly, this convergence is also evident for the determinants of information asymmetry problems, with profitability and liquidity variables negatively influencing Spanish and Portuguese firms' leverage. However, only the financing decisions of Spanish firms are influenced by market conditions and stock market development. |
|---|---|
| Autores principais: | Rogão, Márcia |
| Outros Autores: | Serrasqueiro, Zélia |
| Assunto: | Capital structure company-specific factors country-specific factors |
| Ano: | 2022 |
| País: | Portugal |
| Tipo de documento: | documento de conferência |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Bragança |
| Idioma: | inglês |
| Origem: | Biblioteca Digital do IPB |
| Resumo: | In order to analyse the convergence of capital structure decisions of Spanish and Portuguese listed firms, using dynamic estimators to analyse the effect of firm-specific and country-specific determinants, with a sample composed of and 67 Spanish listed non-financial Spanish listed firms and 35 Portuguese listed non-financial firms, for the period of analysis between 2008 and 2016. The results obtained indicate that capital structure decisions of Portuguese and Spanish listed companies converge in terms of transaction costs, however in greater magnitude for Portuguese companies, since the coefficient of adjustment of current debt towards the optimal level of leverage varies between 0.662 and 0.695 for Spanish firms and between 0.674 and 0.834 for Portuguese firms. The results also indicate a convergence in the behaviour of Spanish and Portuguese firms' financing decisions in the context of agency costs, as the results indicate the existence of a significant positive relationship between the tangibility of firms' assets. Similarly, this convergence is also evident for the determinants of information asymmetry problems, with profitability and liquidity variables negatively influencing Spanish and Portuguese firms' leverage. However, only the financing decisions of Spanish firms are influenced by market conditions and stock market development. |
|---|