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The effect of asset tangibility on capital structure: a cross - country analysis

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Detalhes bibliográficos
Resumo:Using Compustat data from 2003 to 2022, this paper studies the effect of asset tangibility on capital structure for 57 distinct countries. Carrying out an empirical analysis yields that (1) there is a positive relationship between asset tangibility and capital structure, (2) cross-country variation in the effect of asset tangibility on capital structure may be explained by differences in a country’s creditor-friendliness of bankruptcy laws and differences in a country’s interpersonal trust level, and (3) the effect of asset tangibility on capital structure is more pronounced for EU-firms, as compared to US-firms.
Autores principais:Hüsemann, Luca Lisanne
Assunto:Capital structure Asset tangibility Creditor-friendliness of bankruptcy laws Interpersonal trust
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:Using Compustat data from 2003 to 2022, this paper studies the effect of asset tangibility on capital structure for 57 distinct countries. Carrying out an empirical analysis yields that (1) there is a positive relationship between asset tangibility and capital structure, (2) cross-country variation in the effect of asset tangibility on capital structure may be explained by differences in a country’s creditor-friendliness of bankruptcy laws and differences in a country’s interpersonal trust level, and (3) the effect of asset tangibility on capital structure is more pronounced for EU-firms, as compared to US-firms.