Abstract

http://ssrn.com/abstract=647727
 
 

References (46)



 
 

Citations (22)



 


 



The Capital Structure of Swiss Companies: An Empirical Analysis Using Dynamic Panel Data


Philippe Gaud


Rentes Genevoises

Elion Jani


University of Geneva - Graduate School of Business (HEC-Geneva)

Martin Hoesli


University of Geneva - Graduate School of Business (HEC-Geneva); University of Aberdeen - Business School; Swiss Finance Institute

Andre Bender


University of Geneva - Hautes Études Commerciales (HEC-Genève)


European Financial Management, Vol. 11, No. 1, pp. 51-69, January 2005

Abstract:     
In this paper, we analyse the determinants of the capital structure for a panel of 104 Swiss companies listed in the Swiss stock exchange. Dynamic tests are performed for the period 1991-2000. It is found that the size of companies and the importance of tangible assets are positively related to leverage, while growth and profitability are negatively associated with leverage. The sign of these relations suggest that both the pecking order and trade-off theories are at work in explaining the capital structure of Swiss companies, although more evidence exists to validate the latter theory. Our analysis also shows that Swiss firms adjust toward a target debt ratio, but the adjustment process is much slower than in most other countries. It is argued that reasons for this can be found in the institutional context.

Number of Pages in PDF File: 16

Accepted Paper Series





Date posted: January 12, 2005  

Suggested Citation

Gaud, Philippe and Jani, Elion and Hoesli, Martin and Bender, Andre, The Capital Structure of Swiss Companies: An Empirical Analysis Using Dynamic Panel Data. European Financial Management, Vol. 11, No. 1, pp. 51-69, January 2005. Available at SSRN: http://ssrn.com/abstract=647727

Contact Information

Philippe Gaud (Contact Author)
Rentes Genevoises ( email )
Place du Molard 11
CP 3013
Geneva 3, 1211
Switzerland
Elion Jani
University of Geneva - Graduate School of Business (HEC-Geneva) ( email )
40 Boulevard du Pont d'Arve
Geneva 4, 1211
Switzerland
Martin Edward Ralph Hoesli
University of Geneva - Graduate School of Business (HEC-Geneva) ( email )
40 Boulevard du Pont d'Arve
Geneva 4, 1211
Switzerland
+41 22 379 8122 (Phone)
+41 22 379 8104 (Fax)
University of Aberdeen - Business School ( email )
Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom
+41 22 379 8122 (Phone)
+41 22 379 8104 (Fax)
Swiss Finance Institute ( email )
c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Switzerland

Andre Bender
University of Geneva - Hautes Études Commerciales (HEC-Genève) ( email )
40 Boulevard du Pont d'Arve
Geneva 4, 1211
Switzerland
+41 22 705 8135 (Phone)
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