Is the Negative Relation between Leverage and Historical Market‐To‐Book Specific to US and Information and Communication Technology Firms?

17 Pages Posted: 12 Jun 2011

See all articles by W. Allard Bruinshoofd

W. Allard Bruinshoofd

affiliation not provided to SSRN

Leo de Haan

De Nederlandsche Bank

Date Written: June 2011

Abstract

This paper examines the relationship between corporate capital structures and historical market‐to‐book ratios using panel data for US, UK, and continental European firms for the period 1991–2001. We confirm the negative effect on leverage found for the United States, but find that this effect is weak for the United Kingdom and continental Europe and moreover specific to information and communication technology (ICT) firms and the ICT boom episode in continental Europe.

Suggested Citation

Bruinshoofd, W. Allard and de Haan, Leo, Is the Negative Relation between Leverage and Historical Market‐To‐Book Specific to US and Information and Communication Technology Firms? (June 2011). International Review of Finance, Vol. 11, Issue 2, pp. 227-243, 2011. Available at SSRN: https://ssrn.com/abstract=1861764 or http://dx.doi.org/10.1111/j.1468-2443.2010.01116.x

W. Allard Bruinshoofd

affiliation not provided to SSRN

No Address Available

Leo de Haan (Contact Author)

De Nederlandsche Bank ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands
+31 20 5243539 (Phone)
+31 20 5242514 (Fax)

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