Culture's influences: An investigation of inter-country differences in capital structure

Bhaird, Ciarán Mac an; Lucey, Brian M.

doi:10.1016/j.bir.2013.10.004

Cited by 35 publications

(24 citation statements)

References 48 publications

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“…The last group of factors affecting the capital structure of enterprises includes the characteristics of the economy of the country in which they operate. These factors were analyzed by Rajan and Zingales [36], Frank and Goyal [50], de Jong et al [57], Mac An Bhaird and Lucey [58], Psillaki [59], and Graham and Harvey [60]. They can be divided into two groups.…”

Section: Hypothesis 2bmentioning

confidence: 99%

Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union

Jaworski

Czerwonka

2021

Energies

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The aim of the study is to identify the main determinants of the capital structure of energy industry companies in the European Union. The study was based on a panel of 6122 companies from 25 EU countries, operating between 2011 and 2018. The study used multiple regression analysis. We have obtained strong evidence for a positive relationship between corporate debt and tangibility and size, and a negative relationship for profitability and liquidity. The factors that also affect the share of debt in capital have turned out to be growth (positive relationship) and non-debt tax shield (negative relationship), but the statistical significance of these relationships is ambiguous. We have shown that growth of industry business risk is accompanied by an increase in corporate debt and this is a distinguishing feature of the energy industry. For country-specific capital structure determinants, we have obtained strong evidence for the negative relationship between GDP growth, the level of stakeholder rights protection, the degree of capital markets development, and indebtedness of the companies studied. There has been moderate support for the hypotheses of a positive effect of inflation, taxation, and the degree of financial institutions development. Our study has also shown a negative impact of the volume of energy consumption and the share of renewable sources in its production and a positive impact of market monopolization on the indebtedness of companies from the energy industry in the EU.

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Section: Hypothesis 2bmentioning

confidence: 99%

Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union

Jaworski

Czerwonka

2021

Energies

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“…Pecking order theory predicts a positive relationship between firm growth and debt ratio because high-growth firms usually need large amounts of capital to finance their growth (Hall et al, 2004;López Gracia and Sogorb Mira, 2008;Mac an Bhaird and Lucey, 2014;Sánchez Vidal and Martin Ugedo, 2005). Accordingly, the following hypotheses are formulated:…”

Section: The Independent Variables and Hypothesesmentioning

confidence: 99%

“…Researchers have begun to pay attention to SMEs, and studies of the issue examined here are considered relevant (López Gracia and Sogorb Mira, 2008), not least since the 2008 financial crisis (Proença et al , 2014). Moreover, as argued by Mackie-Mason (1990), Hall et al (2004), Daskalakis and Psillaki (2008), Cassia and Vismara (2009) and Mac an Bhaird and Lucey (2014), financing behaviour is context dependent and country-level differences in financial, taxation, legal and regulatory systems can influence the capital structure of SMEs.…”

Section: Introductionmentioning

confidence: 99%

Short- and long-term debt determinants in Swedish SMEs

Yazdanfar

2017

RAF

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Purpose This paper aims to empirically investigate the capital structure determinants of small and medium-sized enterprises (SMEs) with a particular focus on short- and long-term debt. Design/methodology/approach Several methods were used to analyse a sample of 15,897 Swedish SMEs for which complete financial information was available for a four-year period following the 2008 financial crisis, i.e. the 2009-2012 period. Findings The results indicate that eight explanatory variables – i.e. size, age, growth, profitability, liquidity, asset tangibility, non-debt tax shields and industry affiliation – are associated to various extents with SME debt policy. Research limitations/implications The current study is limited to examining a sample of Swedish SMEs in five industry sectors covering the 2009-2012 period. Further research could examine the generalizability of the present results by considering other countries, industry sectors and periods. Practical implications As debt policy influences firm performance, value and survival, SME owners and managers, regulators and financial institutions may benefit from studies considering a relatively large number of capital structure determinants, several of which are linked to short- and long-term debt in various ways. Originality/value This study is one of the few to examine the determinants of short- and long-term debt in SMEs, which play a fundamental role in the economy, using a large-scale cross-sectional database covering a period following the 2008 financial crisis.

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“…Other theoretical developments analyze the influence of the national culture in the determination of the capital structure, the financing options of the companies and the debt maturity (Antonczyk & Salzmann, 2014;Antonczyk et al, 2010Antonczyk et al, , 2011Chui et al, 2002;Fairbairn, 2013;Gleason et al, 2000;Hilgen, 2014;Mac an Bhard & Lucey, 2014;Poker Junior et al, 2015;Rihab & Lofti, 2011). Furthermore, these studies use variables that are related to the cultural dimensions proposed by Hofstede (1980) and Schwartz (1992Schwartz ( , 1994.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Even though there is a large number of existing empirical studies that are based on theories that explain the capital structure of the entities, there is still a small number of studies that explain the motivational factors that underlie the cultural values and the indices of cultural dimensions. These studies aim to explain the capital structure of the companies of the countries under review (Antonczyk & Salzmann, 2014;Antonczyk, Breuer, & Salzmann, 2010Chui, Lloyd, & Kwok, 2002;Fairbairn, 2013;Gleason, Mathur, & Mathur, 2000;Hilgen, 2014;Mac an Bhard & Lucey, 2014;Poker Junior, Belli, & Milani Filho, 2015;Rihab & Lofti, 2011;Wang & Esqueda, 2014) by using the indices of cultural values of such countries, namely the indices of cultural values proposed by Hofstede (1980) and Schwartz (1994Schwartz ( , 1999.…”

Section: Introductionmentioning

confidence: 99%

Are the cultural accounting values a relevant issue for the SMEs’ financing options?

Albuquerque

Quirós

Justino

2017

Contaduría y Administración

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This paper aims to examine the financing options of the managers/owners of SMEs (small and mediumsized companies) from a point of view that incorporates cultural values, namely, conservatism and secrecy. Data were collected with the use of a questionnaire conducted for managers/owners of a sample of 1629 Portuguese SMEs, and with the use of accounting and financial information from the period 2009 to 2011. 438 managers/owners provided valid answers, corresponding to a response rate of 27%. Using multivariate regression techniques as a basis, the results showed that a significant number of managers/owners supported the negative relationship between conservatism/secrecy and the business financing options associated with a higher risk (debts with costs). The results also showed that a more significant number of managers/owners of national SMEs choose sources of financing in light of the pecking order theory.

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Culture's influences: An investigation of inter-country differences in capital structure

Cited by 35 publications

References 48 publications

Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union

Determinants of Enterprises’ Capital Structure in Energy Industry: Evidence from European Union

Short- and long-term debt determinants in Swedish SMEs

Are the cultural accounting values a relevant issue for the SMEs’ financing options?

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