Year: 2008
Type: article
Abstract: This article presents an analysis of how Norwegian nonlisted firms are financed. Using a unique database covering all limited liability firms in Norway, both the size (leverage) and composition (maturity structure) of debt are investigated. The empirical evidence provides support for the effects of taxes, asymmetric information and size suggested in the theoretical literature and rejects the effects of agency costs and the pecking order theory. It also shows that the capital structure choice in these firms is not made in a fundamentally different way than in large firms.
Source: Applied Financial Economics
Authors: Suzan Hol, Nico Van der Wijst
Institution: Norwegian University of Science and Technology
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2019317746