High debt companies' leverage determinants in Spain: A quantile regression approach

F. Javier Sánchez-Vidal

Economic Modelling, 2014, vol. 36, issue C, 455-465

Abstract: With a severe debt overhang problem in Spain, either public or private, the analysis of the factors that influence companies' leverage in this country reveals essential, in particular for the high-indebted firms. This study benefits from the quantile regression approach advantages over the OLS method to analyze the leverage determinants for a large sample of companies for the 2001–2011 period depending on their level of indebtedness. This method reveals that for the highly-leveraged companies many factors are no longer significant and that cash flow variable is crucial if the companies would like to decrease their debt levels.

Keywords: Quantile regressions; Capital structure; High-debt companies (search for similar items in EconPapers)
JEL-codes: C13 G32 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:36:y:2014:i:c:p:455-465

DOI: 10.1016/j.econmod.2013.08.043

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