Asset Tangibility and Capital Structure: Does Institutional Heterogeneity Matter?

IF 1.2 Q3 BUSINESS, FINANCE
Sharif Mazumder
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Abstract

Existing studies of capital structure show a positive association between tangible assets and leverage, but these studies have ignored the potential systematic variation in magnitude due to institutional heterogeneity across countries. Using a sample from 32 countries, we find that the association between tangible assets and leverage is weaker if firms are located in countries with stronger creditors’ rights, better financial development, good governance, and more transparency. Using the US subprime mortgage crisis as a quasi-natural experiment, we find that the role of tangibility as a determinant of leverage becomes stronger during the crisis period. However, stronger institutional environments (i.e., stronger creditors rights, better financial development, good governance, and high country-level transparency) play a pivotal moderating role and reduce this enhanced association during the crisis period.

Abstract Image

资产有形性与资本结构:制度异质性是否重要?
现有的资本结构研究表明,有形资产和杠杆之间存在正相关关系,但这些研究忽略了由于各国制度异质性而导致的潜在系统性差异。使用来自32个国家的样本,我们发现,如果公司位于债权人权利更强、金融发展更好、治理良好、透明度更高的国家,那么有形资产与杠杆之间的关联就更弱。利用美国次贷危机作为准自然实验,我们发现,在危机期间,有形性作为杠杆的决定因素的作用变得更强。然而,更强大的制度环境(即更强大的债权人权利、更好的金融发展、良好的治理和更高的国家层面透明度)在危机期间发挥了关键的调节作用,并减少了这种增强的关联。
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来源期刊
CiteScore
2.30
自引率
7.10%
发文量
69
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