Asimakopoulos, Ioannis and Athanasoglou, Panayiotis and Siriopoulos, Konstantinos (2006): External financing, growth and capital structure. Published in: RePEc No. Economic Bulletin 26 (January 2006): pp. 59-77.
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The study focuses on Greek non-financial firms listed on the Athens Exchange in the period 1998-2002 and shows that only a small fraction of these firms were in a position to finance their growth by exclusively using internal resources with the findings varying depending on the firms’ size. For those firms that had to resort to external financing, short-term financing was favoured compared to long-term financing. While the need for short-term debt did not differ significantly between small and large firms, the need for additional long-term debt was clearly greater for large firms. As regards the determinants of capital structure(as measured by the total-debt-to-assets ratio), the effect of profitability is negative and statistically significant supporting the “pecking order” theory. As expected, tangible assets and firm size have a positive and statistically significant effect on the total debt-to-assets ratio, while short-term assets have the anticipated positive effect only on short-term external financing.
|Item Type:||MPRA Paper|
|Original Title:||External financing, growth and capital structure|
|English Title:||External financing, growth and capital structure|
|Keywords:||capital structure; Athens Exchange;|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill|
|Depositing User:||PANAYIOTIS P. ATHANASOGLOU|
|Date Deposited:||07. Jul 2011 15:44|
|Last Modified:||12. Feb 2013 06:31|
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