Firm and Industry Specific Determinants of Capital Structure: Evidence from Australian Market Paper

27 Pages Posted: 4 Feb 2015  

Lary Li

RMIT University - School of Economics, Finance and Marketing; Financial Research Network (FIRN)

Silvia Zia Islam

RMIT University; Financial Research Network (FIRN)

Date Written: January 30, 2015

Abstract

We demonstrate the importance of firm-specific and industry-specific factors in the leverage decision of Australian firms. Empirical findings show that some firm-specific factors vary across industry, while prior literature assumes equal impact of these factors. In addition, we find that industry-specific factors have direct and indirect impact on the formation of capital structure of Australian firms.

Keywords: Capital Structure, Firm-Specific factors, Industry-Specific factors

JEL Classification: G30, G32

Suggested Citation

Li, Lary and Islam, Silvia Zia, Firm and Industry Specific Determinants of Capital Structure: Evidence from Australian Market Paper (January 30, 2015). 2015 Financial Markets & Corporate Governance Conference. Available at SSRN: https://ssrn.com/abstract=2557861 or http://dx.doi.org/10.2139/ssrn.2557861

Larry Li (Contact Author)

RMIT University - School of Economics, Finance and Marketing ( email )

Business
Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Silvia Zia Islam

RMIT University ( email )

124 La Trobe Street
Melbourne, 3000
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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