Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5054318 | Economic Modelling | 2014 | 11 Pages |
Abstract
With a severe debt overhang problem in Spain, either public or private, the analysis of the factors that influence companies' leverage in this country reveals essential, in particular for the high-indebted firms. This study benefits from the quantile regression approach advantages over the OLS method to analyze the leverage determinants for a large sample of companies for the 2001-2011 period depending on their level of indebtedness. This method reveals that for the highly-leveraged companies many factors are no longer significant and that cash flow variable is crucial if the companies would like to decrease their debt levels.
Related Topics
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Economics and Econometrics
Authors
F. Javier Sánchez-Vidal,