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Is the Negative Relation Between Leverage and Historical Market‐To‐Book Specific to US and Information and Communication Technology Firms? *
Author(s) -
BRUINSHOOFD W. ALLARD,
DE HAAN LEO
Publication year - 2011
Publication title -
international review of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.489
H-Index - 18
eISSN - 1468-2443
pISSN - 1369-412X
DOI - 10.1111/j.1468-2443.2010.01116.x
Subject(s) - leverage (statistics) , boom , information and communications technology , panel data , business , economics , financial economics , political science , econometrics , engineering , machine learning , environmental engineering , computer science , law
This paper examines the relationship between corporate capital structures and historical market‐to‐book ratios using panel data for US, UK, and continental European firms for the period 1991–2001. We confirm the negative effect on leverage found for the United States, but find that this effect is weak for the United Kingdom and continental Europe and moreover specific to information and communication technology (ICT) firms and the ICT boom episode in continental Europe.