Asset specificity,firm heterogeneity and capital structure |
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Authors: | Srinivasan Balakrishnan Isaac Fox |
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Abstract: | This paper presents an empirical investigation of the importance of specialized assets and other unique characteristics of a firm in explaining the variance in capital structure across firms. The results show that firm-specific effects contribute most to the variance in leverage, suggesting a strong link between strategy and capital structure. |
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Keywords: | Strategy firm specific assets capital structure |
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