Firm- and country-level determinants of corporate leverage: Some new international evidence

► This research analyzes the determinants of capital structure across 37 countries. ► Firm-level covariates drive two-thirds of the international variation in capital structure. ► Country-level covariates explain the remaining one-third. ► The relations of leverage and its determinants are consistent with the capital structure theories. ► Country-level determinants moderate the impact of the firm-level determinants on leverage.