Which Factors Determine the Capital Structure of Non-Financial Publicly Traded Irish Firms?

Accounting, Finance and Governance Review, Vol. 22, 27-57, 2020

41 Pages Posted: 13 Apr 2020

See all articles by Thomas O’Connor

Thomas O’Connor

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting

Bridget McNally

affiliation not provided to SSRN

Julie Byrne

Dublin City University

Date Written: March 17, 2020

Abstract

In this paper, we trace the indebtedness of the non-financial corporate sector in Ireland over the period from 1980 to 2007. This period witnessed an episode of leveraging to 2001, following by a period of deleveraging to 2007. Our findings suggest that fundamentals can help explain why firms became more indebted between 1980 and 2001, but the deleveraging that took place after 2001 is due to factors other than the fundamentals included in our analysis. While we cannot say definitively, our findings may be in line with evidence which points to a concerted effort on the part of Irish firms to reduce their debt financing since 2001.

Keywords: Corporate debt, fundamentals, Ireland

JEL Classification: G15, F36

Suggested Citation

O'Connor, Thomas and McNally, Bridget and Byrne, Julie, Which Factors Determine the Capital Structure of Non-Financial Publicly Traded Irish Firms? (March 17, 2020). Accounting, Finance and Governance Review, Vol. 22, 27-57, 2020, Available at SSRN: https://ssrn.com/abstract=3555876

Thomas O'Connor (Contact Author)

National University of Ireland, Maynooth (NUI Maynooth) - Department of Economics, Finance and Accounting ( email )

County Kildare
Ireland

Bridget McNally

affiliation not provided to SSRN

Julie Byrne

Dublin City University ( email )

Ireland 9
Dublin 9, leinster 9
Ireland

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