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Capital Structure of Nongovernmental Development Organizations
Author(s) -
GarciaRodriguez Inigo,
Jegers Marc
Publication year - 2017
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.21275
Subject(s) - leverage (statistics) , capital structure , pecking order , debt , pecking order theory , kingdom , debt ratio , order (exchange) , external debt , economics , capital (architecture) , business , accounting , finance , geography , paleontology , archaeology , evolutionary biology , biology , machine learning , computer science
In the first international study of this kind, we analyze the capital structure of 364 nongovernmental development organizations ( NGDOs ) from three different countries: Belgium, Spain, and the United Kingdom. We observe lower debt ratio values in the United Kingdom, and significant differences between countries were found by testing an econometric model with the five classical determinants of leverage, considering total debt and both long‐ and short‐term debt. We find support for the pecking order theory, and we broadly discuss some possible reasons for the obtained differences.