Bevan, Alan; Danbolt, Jo - In: Applied Financial Economics 12 (2002) 3, pp. 159-170
Prior research on capital structure by Rajan and Zingales (1995) suggests that the level of gearing in UK companies is positively related to size and tangibility, and negatively correlated with profitability and the level of growth opportunities. However, as argued by Harris and Raviv (1991),...