RT info:eu-repo/semantics/article
T1 The role of macroeconomic factors in the capital structure of European firms: How influential is bank debt?
A1 Azofra Palenzuela, Valentín Teodoro
A1 Rodríguez Sanz, Juan Antonio
A1 Velasco González, María Del Pilar
K1 Empresas-Finanzas
K1 capital structure
K1 trade-off theory
K1 macroeconomic factors
K1 bank debt
K1 GMM
AB Based on a partial target adjustment model and the trade-off theory, this paper investigateswhether the influence of macroeconomic variables of monetary policy on corporate leverage isshaped by the nature of borrowing, and more specifically by the presence of bank debt. Given theimportance of banking institutions as transmitters of monetary policy, we argue that this source ofdebt might play a critical role in capital structure behaviour. In addition, as banking relationshipsare more informative and flexible, bank debt is likely to soften the effects of the economic cycle.Using a sample of European countries from 2004 to 2015, our evidence reveals that bank debtmodifies the impact which macroeconomic variables of monetary policy have on a firm’s leverage.By comparing crisis and non-crisis periods, our results also show a more stable influence of saidvariables over the business cycle on bank debt than on non-bank debt.
PB Elsevier
SN 1873-8036
YR 2020
FD 2020
LK https://uvadoc.uva.es/handle/10324/65391
UL https://uvadoc.uva.es/handle/10324/65391
LA spa
NO International Review of Economics & Finance, 2020, Vol. 69, p. 494-514.
NO Producción Científica
DS UVaDOC
RD 22-dic-2024