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Asset specificity, firm heterogeneity and capital structure
Author(s) -
Balakrishnan Srinivasan,
Fox Isaac
Publication year - 1993
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250140103
Subject(s) - capital structure , leverage (statistics) , variance (accounting) , asset (computer security) , capital call , business , industrial organization , economics , econometrics , microeconomics , financial economics , finance , financial capital , accounting , computer science , individual capital , debt , computer security , profit (economics) , machine learning
This paper presents an empirical investigation of the importance of specialized assets and other unique characteristics of a firm in explaining the variance in capital structure across firms. The results show that firm‐specific effects contribute most to the variance in leverage, suggesting a strong link between strategy and capital structure.