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A Comparison of Capital Structure Determinants: The United States and The Republic of Korea

A Comparison of Capital Structure Determinants: The United States and The Republic of Korea This paper investigates the determinants of the capital structure of large corporations headquartered in the United States and Korea. We consider five explanatory variables: profit, company size, non‐debt tax shields, growth, and business‐risk, along with several industry indicator variables as independent variables and examine, for each country, the relationship to market value based leverage ratio. With our rigid criteria for inclusion in the study, we study the top thirteen companies (by size) in each of seven industries. The majority of our findings indicate that we can generalize to Korea what has been found for Japanese companies/industries relative to the U.S. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

A Comparison of Capital Structure Determinants: The United States and The Republic of Korea

Multinational Business Review , Volume 16 (1): 22 – Mar 11, 2008

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References (36)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1525-383X
DOI
10.1108/1525383X200800004
Publisher site
See Article on Publisher Site

Abstract

This paper investigates the determinants of the capital structure of large corporations headquartered in the United States and Korea. We consider five explanatory variables: profit, company size, non‐debt tax shields, growth, and business‐risk, along with several industry indicator variables as independent variables and examine, for each country, the relationship to market value based leverage ratio. With our rigid criteria for inclusion in the study, we study the top thirteen companies (by size) in each of seven industries. The majority of our findings indicate that we can generalize to Korea what has been found for Japanese companies/industries relative to the U.S.

Journal

Multinational Business ReviewEmerald Publishing

Published: Mar 11, 2008

Keywords: Capital structure; Profit; Company size; Non‐debt tax shields; Business‐risk; United States; Republic of Korea

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