In this paper we examine the following two hypotheses, which traditional theories of capital structure are relatively silent about: (i) the determinants of financial leverage decisions are different for micro, small, medium and large firms; and (ii) the factors that determine whether or not a...

In this paper we examine the following two hypotheses which traditional theories of capital structure are relatively silent about: (i) the determinants of financial leverage decisions are different for micro, small, medium and large firms; and (ii) the factors that determine whether or not a...

Linear models are typically used in the regression analysis of capital structure choices. However, given the proportional and the bounded nature of leverage ratios, models such as the tobit, the fractional regression model and its two-part variant are a better alternative. In this article, we...