Semantic Scholar Open Access 2005 810 sitasi

How Does Industry Affect Firm Financial Structure?

Peter Mackay G. Phillips

Abstrak

We examine the importance of industry to firm-level financial and real decisions. We find that in addition to standard industry fixed effects, financial structure also depends on a firm's position within its industry. In competitive industries, a firm's financial leverage depends on its natural hedge (its proximity to the median industry capital--labor ratio), the actions of other firms in the industry, and its status as entrant, incumbent, or exiting firm. Financial leverage is higher and less dispersed in concentrated industries, where strategic debt interactions are also stronger, but a firm's natural hedge is not significant. Our results show that financial structure, technology, and risk are jointly determined within industries. These findings are consistent with recent industry equilibrium models of financial structure. Copyright 2005, Oxford University Press.

Topik & Kata Kunci

Economics

Penulis (2)

Peter Mackay

G. Phillips

Format Sitasi

APA MLA BibTeX

Mackay, P., Phillips, G. (2005). How Does Industry Affect Firm Financial Structure?. https://doi.org/10.1093/RFS/HHI032

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Informasi Jurnal

Tahun Terbit: 2005
Bahasa: en
Total Sitasi: 810×
Sumber Database: Semantic Scholar
DOI: 10.1093/RFS/HHI032
Akses: Open Access ✓