Firm and industry specific determinants of capital structure: Evidence from the Australian market

Larry Li and Silvia Z. Islam

International Review of Economics & Finance, 2019, vol. 59, issue C, 425-437

Abstract: We demonstrate the importance of firm-specific and industry-specific factors in the leverage decision on a sample of Australian publicly listed companies from 1999 to 2012. Empirical findings show that some firm-specific factors vary across industries, whereas, several previous studies find an equal impact of these factors. In addition, we find that industry-specific factors have direct and indirect impacts on the formation of the capital structure of Australian firms, but the results of some industry-specific factors are subject to the choices of leverage ratios. Overall, we conclude that industry-specific factors are important in terms of corporate capital structure formation.

Keywords: Leverage; Capital structure; Industry; Australian firms (search for similar items in EconPapers)
JEL-codes: G3 G30 G32 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:59:y:2019:i:c:p:425-437

DOI: 10.1016/j.iref.2018.10.007

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