Firm size and capital structure: Evidence using dynamic panel data

Víctor M. González () and Francisco González ()
Additional contact information
Víctor M. González: Department of Business Administration - Universidad de Oviedo = University of Oviedo
Francisco González: Department of Business Administration - Universidad de Oviedo = University of Oviedo

Post-Print from HAL

Abstract: This paper suggests that the validity of the trade-off (TOT) and pecking-order (POT) theories to explain financing decisions varies among small, medium-sized and large firms. Using dynamic panel data tests on a sample of 3,439 Spanish firms over the period 1995-2003, results are partially consistent with both explanations but suggest a greater validity of pecking-order predictions for small firms. In small firms, the negative influence of profitability and the positive influence of investment opportunities and of intangible assets on firm debt predicted by the POT are heightened. However, no differences are observed between small and large firms in their speed of adjustment to the target leverage as suggested by the TOT.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-09-08
Note: View the original document on HAL open archive server: https://hal.science/hal-00730234
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Applied Economics, 2011, 44 (36), pp.4745-4754. ⟨10.1080/00036846.2011.595690⟩

Downloads: (external link)
https://hal.science/hal-00730234/document (application/pdf)

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:hal:journl:hal-00730234

DOI: 10.1080/00036846.2011.595690

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().