Capital Structure of Internet Companies: Case Study

Anton Miglo, Shuting Liang and Zhenting Lee

MPRA Paper from University Library of Munich, Germany

Abstract: We analyze the financing decisions and capital structure of internet companies and relate observed findings to the common capital structure theories. Large internet companies usually have low debt and small internet companies have high debt. We find that the trade-off theory of capital structure, pecking order theory, market timing theory and other theories cannot individually explain a firm’s capital structure. However, they can compliment each other in describing some patterns of observed behavior. We also suggest a number of recommendations for capital structure theory and practice.

Keywords: capital structure; internet companies; financing strategy; sources of financing (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ict
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56330

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