Capital Structures of US Market Firms and Its Determinants During Different Macroeconomic States and Various Leverage Levels.

18 Pages Posted: 12 Mar 2018

See all articles by Konstantinos Gkillas

Konstantinos Gkillas

University of Patras - Department of Management Science and Technology

George Peppas

Hellenic Open University

Athanasios Tsagkanos

University of Patras - Business Administration

Ilias K. Salatas

University of Patras - Business Administration

Date Written: March 11, 2018

Abstract

The Capital structure and its determinants have been in the sight of econometric scientific community for some time now. More and more research studies have focused in the adjustment speed of debt ratio to the targeted debt ratio levels under various macroeconomic and firm factors. The problem we would like to consider is the power and the direction of the effects of different firm specific and macroeconomic factors that influence the Total Debt Ratio the Long Debt Ratio and the Short debt ratio in regular and during crisis periods on a dataset of US firms. Instead of just looking averages we want to spectate what these effects are for firms that have low, medium and high Debt Ratios. This is succeeded by looking along the distribution or quantiles of the dependent variable of our partial adjustment model. The findings about the long debt ratio adjustment speed for low leveraged firms is that is not only slowed down but also with bigger pace in crisis periods than is slowed for higher leveraged firms. The TDR and SHDR seem rather unaffected from crisis. The firm specific and macro-economic variable is affecting differently low medium and large leveraged firm although in a secondary role.

Keywords: Capital Structure, Quantile Partial Adjustment Models, Debt

JEL Classification: G32

Suggested Citation

Gkillas, Konstantinos and Peppas, George and Tsagkanos, Athanasios and K. Salatas, Ilias, Capital Structures of US Market Firms and Its Determinants During Different Macroeconomic States and Various Leverage Levels. (March 11, 2018). Available at SSRN: https://ssrn.com/abstract=3138009 or http://dx.doi.org/10.2139/ssrn.3138009

Konstantinos Gkillas

University of Patras - Department of Management Science and Technology ( email )

Megalou Aleksandrou 1
Koukouli, Patras, 26334
Greece

HOME PAGE: http://https://dept.upatras.gr

George Peppas (Contact Author)

Hellenic Open University ( email )

Parodos Aristotelous 18
Patra, 26335
Greece
+30 2610 367402 (Phone)

HOME PAGE: http://acclab.eap.gr/en/

Athanasios Tsagkanos

University of Patras - Business Administration ( email )

Patras
Greece

Ilias K. Salatas

University of Patras - Business Administration ( email )

Patras
Greece

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