Firm complexity and capital structure: evidence from U.S. public firms
Year: 2026
Type: article
Abstract: This paper examines the impact of a firm’s information complexity on capital structure decisions, focusing on how |firm disclosure complexity influences financial leverage. Using a large panel of U.S. public firms, I document a significant and positive association between information complexity and multiple measures of leverage, including book, market, short-term, and long-term debt ratios. The effect is particularly pronounced among financially constrained firms, highlighting the role of information complexity in mitigating financing frictions. The findings contribute to capital structure theory by identifying information complexity as a structural firm attribute that enhances debt capacity, complementing trade-off and information asymmetry perspectives.
Source: Journal of Business Research
Author: Rudresh Pandey
Institution: OsloMet – Oslo Metropolitan University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,440
OpenAlex ID: W7128696339