Revisiting Determinants of Capital Structure: Evidence and Arguments
Year: 2011
Type: preprint
Abstract: This paper provides and reviews literature on determinants of capital structure. Its aim is to highlight that majority of previous studies on capital structure have considered only demand side factors while overlooked the credit supply conditions as determinants of capital structure. The study brings together the earlier as well as the recent literature on determinants of capital structure and the effect of financial crisis on firms’ behaviour, to provide further insights into the determinants of firm financing decisions. It highlights that credit supply conditions are significant in determining firm financing decisions. The paper concludes that accounting for both demand and supply factors are crucial in understanding the firm financing decisions.
Source: SSRN Electronic Journal
Authors: Shafiq ur Rehman, Mushtaq ur Rehman
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2271745647