Suchergebnisse

The determinants of capital structure : evidence from the global water industry / Rajibur Reza and Gurudeo Anand Tularam -- Capital structure and macroeconomic conditions : a review of the literature and a research agenda / A. D'Amato -- How do manufacturing SMEs rebalance the short-term debt ratio? / Filipe Sardo and Zélia Serrasqueiro -- The influence of regulation on debt maturity structure and risk management for European banks / Elisabeth Paulet, Miia Chabot, and Tamym Abdessemed.

AbstractWe investigate the impact of geographic location on firms' capital structure decisions. We find strong evidence that location of a firm influences its capital structure. In particular, we find that centrally located firms have lower leverage ratios than do remotely located ones. Moreover, consistent with the hypothesis that those remotely located firms face more severe adverse selection problems, the effect of geographic location on capital structure is more pronounced when information asymmetry is higher. We further examine alternative explanations of the negative relation between firm geographic proximity and capital structure and show that the financial constraint effect and industry clustering effect do not explain our results. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.