Using Quantile Regressions to Examine the Capital Structure Decision of US Firms

The paper examines the capital structure decision of 3,432 US companies in the year 2006 and 2011. The paper employs quantile regression to explore the predictions of the trade-off and pecking order models. We find evidence of heterogeneity in the capital structure and the determinants of capital structure. We find the data more consistent with the trade-off theory than the pecking order theory in 2006 but find that only economic conditions matter in 2011.

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Year of publication:	2014
Authors:	Arshanapalli, Bala ; Nelson, William
Published in:	The International Journal of Business and Finance Research. - Vol. 8.2014, 5, p. 1-8
Subject:	Quantile Regression \| Capital Structure

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Extent:	application/pdf
Type of publication:	Article
Classification:	G32 - Financing Policy; Capital and Ownership Structure
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010960331