This study examines the effects of global supply chain pressures on firm leverage ratios. I find that firms have historically responded to global supply pressures by reducing their total debt ratios. However, during the extreme pressures of the COVID-19 pandemic, firms sharply increased...

The aim of this paper is to ascertain corporate investment reaction in bank-dependent companies in times of crisis. Our investigation covers the differences in corporate investment reaction due to the global financial crisis (GFC) of 2007-2009 and the COVID-19 crisis of 2020–2021. We utilized...

This work analyses the main trends in bond financing by Italian non-financial firms and its role in relation to bank credit across different economic phases. The first part of the analysis refers to the 2008-2019 period, characterized by both crisis and recovery episodes, while the second part...

Capital structure theories are often formulated as causal narratives to explain which factors drive financing choices. These narratives are usually examined by estimating cross-sectional relations between leverage and its determinants. However, the limitations of causal inference from...

This paper investigates whether and how female board representation will affect firms’ capital structure using a sample of 16,477 firm year observations during the period from 2006 to 2017 obtained from Taiwan Economic Journal (TEJ). While 67% of Taiwanese firms have female directors, most...

This paper considers the effects multilateral opportunistic behaviour on the firm’s capital structure. We show that multiple parties introduce greater incompleteness, because the firm cannot control future contracts in potential opportunistic coalitions. A higher debt-equity ratio increases...

The choice between debt and equity financing has been directed to seek the optimal capital structure. Under the agency costs hypothesis, a high leverage or a low equity/asset ratio reduces the agency costs of outside equity and increases firm value. Several studies show that a firm with high...

Puzzling findings from prior studies demonstrated that US multinational corporations (MNCs) capital structure include significantly lower leverage than their domestic counterparts. This study utilized the period of the 2008- Global Financial Crisis (GFC) to compare the leverage ratios between...

The paper aims at empirically investigating the relationship between regulation and the capital structure of the regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased as a response to previous physical capital investment...

This study aims to investigate the effect of capital structure and ownership structure on firm performance. In addition, this study also examines the existence of reverse causality using firm-level data from three industries of three ASEAN countries, i.e., Indonesia, Malaysia and Singapore. It...