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Firm Size and Capital Structure |
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Wednesday, 31 December 1969 |
Firm size has become such a routine to use as a control variable in empirical corporate finance studies that it receives little to no discussion in most research papers even though not uncommonly it is among the most significant variables. This paper's goal is to provide rationale for one of the size relationships, that is between firm size and capital structure. Cross-sectionally, it has been consistently found that large firms in the U.S. tend to have higher leverage ratios than small firms.
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Last Updated ( Friday, 01 September 2006 )
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