A Survey of Research on the Effect of Tangible Assets on Capital Structure

Wenxi Zhang ()
Additional contact information
Wenxi Zhang: Beijing Institute of Technology, School of Management and Economics

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 1016-1020 from Springer

Abstract: Abstract This paper provides an overview of the literature that investigates on the influence of tangible assets or collateral on capital structure. Previous studies suggest a consistent conclusion that leverage ratio is positively affected by tangible assets. The trade-off theory can well explain the actual relationship, while the pecking order theory makes the opposite prediction. Other theories include the contract incompleteness theory states the relation from agency problem. This study intends to give a list of existing works and possibly offer new research ideas.

Keywords: Capital structure; Tangible assets; Collateral; Pecking-order theory; Trade-off theory; Leverage ratio (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6463-036-7_149

Ordering information: This item can be ordered from
http://www.springer.com/9789464630367

DOI: 10.2991/978-94-6463-036-7_149

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().