Patterns of Capital Structure Adjustment by Listing Type: Evidence from European Firms

Authors

  • Joshua Seungwook BAHNG Middle East Technical University

Keywords:

Capital Structure Adjustment, Listing Types, Quantile Regression, European Firms

Abstract

This study analyzed the questions of whether capital structure adjustment in European firms differed by listing type and by current debt ratio. Major issues are concerned with (1) the adjustment speed toward target debt ratio and (2) the length of the adjustment period required toward the ratios. Results showed that (1) the speed of adjustment of firms with lower debt ratios were faster; (2) the adjustment speeds of listed firms were faster than those of delisted and unlisted firms; and (3) the length of the half-life adjustment time toward target ratio was shorter for listed firms than for delisted and unlisted firms. This paper contributed to the development of capital structure issues in that the adjustment speed could be different depending on firms’ current debt ratios and listing types, unlike previous results in the literature.

Published

31-05-2012

How to Cite

BAHNG, J. S. (2012). Patterns of Capital Structure Adjustment by Listing Type: Evidence from European Firms. Eurasian Journal of Business and Economics, 5(9), 103-117. Retrieved from https://ejbe.org/index.php/EJBE/article/view/65

Issue

Section

Articles