The relationship between capital structure and product market competition in US listed firms
(2017) NEKN02 20171Department of Economics
- Abstract (Swedish)
- This study measures the effect of competition on leverage using unbalanced panel data from 4,957 US listed firms within 8 industries. To address the issues associated with concentration indexes, we contribute to the literature by using a new measure of competition – the Boone indicator which is based on efficiency. Initially results indicate a positive (negative) effect of competition (concentration) on leverage. Due to the distorting effect of the recent financial crisis, the sample was split into two sub-periods. From this it was determined that competition has a significant negative effect on capital structure when measured with the BI which is a theoretically robust proxy for competition. Accounting for non-linearity does not produce... (More)
- This study measures the effect of competition on leverage using unbalanced panel data from 4,957 US listed firms within 8 industries. To address the issues associated with concentration indexes, we contribute to the literature by using a new measure of competition – the Boone indicator which is based on efficiency. Initially results indicate a positive (negative) effect of competition (concentration) on leverage. Due to the distorting effect of the recent financial crisis, the sample was split into two sub-periods. From this it was determined that competition has a significant negative effect on capital structure when measured with the BI which is a theoretically robust proxy for competition. Accounting for non-linearity does not produce any significant results. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8910889
- author
- Rooker, Hannah LU and Kalhor, Chelsea LU
- supervisor
- organization
- course
- NEKN02 20171
- year
- 2017
- type
- H1 - Master's Degree (One Year)
- subject
- language
- English
- id
- 8910889
- date added to LUP
- 2017-06-13 15:18:21
- date last changed
- 2017-06-13 15:18:21
@misc{8910889,
abstract = {{This study measures the effect of competition on leverage using unbalanced panel data from 4,957 US listed firms within 8 industries. To address the issues associated with concentration indexes, we contribute to the literature by using a new measure of competition – the Boone indicator which is based on efficiency. Initially results indicate a positive (negative) effect of competition (concentration) on leverage. Due to the distorting effect of the recent financial crisis, the sample was split into two sub-periods. From this it was determined that competition has a significant negative effect on capital structure when measured with the BI which is a theoretically robust proxy for competition. Accounting for non-linearity does not produce any significant results.}},
author = {{Rooker, Hannah and Kalhor, Chelsea}},
language = {{eng}},
note = {{Student Paper}},
title = {{The relationship between capital structure and product market competition in US listed firms}},
year = {{2017}},
}