Capital structure around the world: The roles of firm- and country-specific determinants

Abe de Jong, Rezaul Kabir, Thuy Thu Nguyen

Research output: Contribution to journalArticleResearchpeer-review

385 Citations (Scopus)


We analyze the importance of firm-specific and country-specific factors in the leverage choice of firms from 42 countries around the world. Our analysis yields two new results. First, we find that firm-specific determinants of leverage differ across countries, while prior studies implicitly assume equal impact of these determinants. Second, although we concur with the conventional direct impact of country-specific factors on the capital structure of firms, we show that there is an indirect impact because country-specific factors also influence the roles of firm-specific determinants of leverage.

Original languageEnglish
Pages (from-to)1954-1969
Number of pages16
JournalJournal of Banking and Finance
Issue number9
Publication statusPublished - 1 Sep 2008
Externally publishedYes


  • Capital structure
  • Country-specific factors
  • Firm-specific factors
  • International evidence
  • Leverage

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