Agency theory predicts that leverage affects agency costs and thereby the firm's influence will be influenced. The goal of the paper is to examine the profitability-capital relationship for the US banks using an unbalanced panel over the period 1995-2007. In our model we used a combination of...

In this paper we propose an integrated model of capital structure to study the partial adjustment process to the optimal long term debt ratio. In our analysis we consider the characteristics of the institutional environment as a factor that influences such adjustment. We use a sample of quoted...