Capital structure determinants and adjustment speed: An empirical analysis of Dutch SMEs

Remco Mocking and Joep Steegmans

No 357, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: This paper presents empirical evidence of both the determinants and the adjustment speed of capital structure of small and medium-sized enterprises (SMEs) in the Netherlands. Using an administrative panel data set of the period 2000-2014, containing 153,923 firms, we estimate a partial adjustment model through system GMM. The results show that firm size and profitability reduce debt to assets ratios, while tangible assets, depreciation, and marginal taxes increase them. Growth of assets is either statistically or economically insignificant. The estimated adjustment speed parameter is 0.748, indicating that the adjustment process is particularly slow in the Netherlands.

JEL-codes: F23 G24 G28 H25 H26 H87 (search for similar items in EconPapers)
Date: 2017-08
New Economics Papers: this item is included in nep-acc, nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cpb.nl/sites/default/files/omnidownloa ... adjustment-speed.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:357

Access Statistics for this paper

More papers in CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis Contact information at EDIRC.
Bibliographic data for series maintained by ().