Using Quantile Regressions to Examine the Capital Structure Decision of US Firms

Bala Arshanapalli and William Nelson

The International Journal of Business and Finance Research, 2014, vol. 8, issue 5, 1-8

Abstract: The paper examines the capital structure decision of 3,432 US companies in the year 2006 and 2011. The paper employs quantile regression to explore the predictions of the trade-off and pecking order models. We find evidence of heterogeneity in the capital structure and the determinants of capital structure. We find the data more consistent with the trade-off theory than the pecking order theory in 2006 but find that only economic conditions matter in 2011.

Keywords: Quantile Regression; Capital Structure (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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