Inter-firm relationships and leverage adjustment

Kazuo Yamada ()

Research in International Business and Finance, 2019, vol. 50, issue C, 381-391

Abstract: This paper points out that inter-firm relationships influence the speed of adjustment of financial leverage, using business group–affiliation data of Japanese business groups (keiretsu) spanning about 30 years. It finds that the adjustment speed of firms within business groups is slower than that of independent firms. This finding remains robust given the use of several estimation methods. Overall, findings indicate the importance of considering the inter-firm relationship in capital structure study.

Keywords: Capital structure; Adjustment speed; Inter-firm network (search for similar items in EconPapers)
JEL-codes: G32 G38 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:50:y:2019:i:c:p:381-391

DOI: 10.1016/j.ribaf.2019.06.006

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