Résumés
Abstract
Corporate leverage is strongly related to firm characteristics. However, this relationship varies across country-level institutions. In this study, we investigate whether country-level regulatory quality indirectly affects corporate leverage by moderating the effects of firm-level determinants of capital structure. Using a sample of 46,184 firms from 70 countries, we show that regulatory quality mitigates the positive influence of firm size and asset tangibility on leverage, while the negative influence of growth opportunities, R&D intensity, and profitability is similarly moderated. These results highlight the benefit of robust regulatory quality in facilitating the access to debt financing of small, R&D-intensive, and growth-oriented firms with few tangible assets.
Keywords:
- capital structure,
- leverage,
- regulatory quality,
- cross-country analysis
Résumé
Le ratio d’endettement est fortement lié aux caractéristiques de l’entreprise. Toutefois, cette relation dépend des institutions nationales. Dans cette étude, nous cherchons à savoir si la qualité de la réglementation affecte indirectement le levier en modérant l’effet des déterminants propres à l’entreprise. À partir d’un échantillon de 46.184 entreprises sur 70 pays, la qualité de la réglementation apparaît modérer l’influence positive de la taille et des actifs corporels sur le levier tandis que l’influence négative des opportunités de croissance, de l’intensité en R&D et de la rentabilité est également atténuée. Ces résultats montrent que la qualité de la réglementation facilite l’accès à l’emprunt des petites entreprises à forte intensité en R&D, orientées vers la croissance et ayant peu d’actifs corporels.
Mots-clés :
- structure du capital,
- ratio d’endettement,
- qualité de la réglementation,
- analyse internationale
Resumen
El coeficiente de endeudamiento está estrechamente relacionado con las características de la empresa. Sin embargo, esta relación depende de las instituciones nacionales. En este estudio, investigamos si la calidad reguladora afecta indirectamente al apalancamiento moderando el efecto de los determinantes específicos de la empresa. A partir de una muestra de 46.184 empresas de 70 países, la calidad reguladora parece moderar la influencia positiva del tamaño y los activos tangibles sobre el apalancamiento, mientras que también se atenúa la influencia negativa de las oportunidades de crecimiento, la intensidad de la I+D y la rentabilidad. Estos resultados muestran que la calidad reguladora facilita el acceso al endeudamiento a las pequeñas empresas intensivas en I+D, orientadas al crecimiento y con pocos activos tangibles.
Palabras clave:
- estructura del capital,
- ratio de endeudamiento,
- calidad reguladora,
- análisis internacional
Parties annexes
Bibliography
- Alves, P. F. P., & Ferreira, M. A.(2011). Capital structure and law around the world. Journal of Multinational Financial Management, 21,119-150. https://doi.org/10.1016/j.mulfin.2011.02.001
- Baghai, R. P., Silva, R. C., Thell, V., & Vig, V. (2021). Talent in distressed firms: Investigating the labor costs of financial distress. Journal of Finance, 76, 2907-2961. https://doi.org/10.1111/jofi.13077
- Bharath, S. T., Pasquariello, P., & Wu, G. (2009). Does asymmetric information drive capital structure decisions? Review of Financial Studies, 22, 3211-3243. https://doi.org/10.1093/rfs/hhn076
- Bhaumik, S. K., Dimova, R., Kumbhakar, S. C., & Sun, K. (2018). Is tinkering with institutional quality a panacea for firm performance? Insights from a semiparametric approach to modeling firm performance. Review of Development Economics, 22, 1-22. https://doi.org/10.1111/rode.12311
- Beck, T., Demirguç-Kunt, A., & Maksimovic, V. (2005). Financial and legal constraints to growth: does firm size matter? Journal of Finance, 60, 137-177. https://doi.org/10.1111/j.1540-6261.2005.00727.x
- Belkhir, M., Maghyereh, A., & Awartani, B. (2016). Institutions and corporate capital structure in the MENA region. Emerging Markets Review, 26, 99-129. https://doi.org/10.1016/j.ememar.2016.01.001
- Bessler, W., Drobetz, W., & Grüninger, M. C. (2011). Information asymmetry and financing decisions. International Review of Finance, 11, 123-154. https://doi.org/10.1111/j.1468-2443.2010.01122.x
- Bielen, S., Marneffe, W., & Vereeck, L. (2015). A cross-country analysis of the impact of regulatory quality on commercial case disposition time. European Journal of Law and Economics, 39, 455-474. DOI 10.1007/s10657-014-9469-5
- Black, J. (2002). Regulatory conversations. Journal of Law & Society, 29, 163-196. https://doi.org/10.1111/1467-6478.00215
- Booth, L., Aivazian, V., Demirguc-Kunt, A., & Maksimovic, V., 2001. Capital structure in developing countries. Journal of Finance, 56, 87–130. https://doi.org/10.1111/0022-1082.00320
- Bradley, M., Jarrell, G. A., & Kim, E. H. (1984). On the existence of an optimal capital structure: Theory and evidence. Journal of Finance, 39, 857-878. DOI: 10.1111/j.1540-6261.1984.tb03680.x
- Chen, Z., Harford, J., & Kamara, A. (2019). Operating leverage, profitability, and capital structure. Journal of Financial and Quantitative Analysis, 54, 369-392. https://doi.org/10.1017/S0022109018000595
- Cho, S. S., El Ghoul, S., Guedhami, O., & Suh, J. (2014). Creditor rights and capital structure: Evidence from international data. Journal of Corporate Finance, 25, 40-60. https://doi.org/10.1016/j.jcorpfin.2013.10.007
- Commander, S., & Svejnar, J. (2011). Business environment, exports, ownership, and firm performance. Review of Economics and Statistics, 93, 309-337. https://doi.org/10.1162/REST_a_00135
- De Jong, A., Kabir, R., & Nguyen, T. T. (2008). Capital structure around the world: The roles of firm-and country-specific determinants. Journal of Banking & Finance, 32, 1954-1969. https://doi.org/10.1016/j.jbankfin.2007.12.034
- Fama, E. F., & French, K. R. (2002). Testing trade-off and pecking order predictions about dividends and debt. Review of Financial Studies, 15, 1-33. https://www.jstor.org/stable/2696797
- Fan, J. P., Titman, S., & Twite, G. (2012). An international comparison of capital structure and debt maturity choices. Journal of Financial and Quantitative Analysis, 47, 23-56. https://doi.org/10.1017/S0022109011000597
- Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67, 217-248. https://doi.org/10.1016/S0304-405X(02)00252-0
- Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: which factors are reliably important? Financial Management, 38, 1-37. https://doi.org/10.1111/j.1755-053X.2009.01026.x
- Gao, W., & Zhu, F. (2015). Information asymmetry and capital structure around the world. Pacific-Basin Finance Journal, 32, 131-159. https://doi.org/10.1016/j.pacfin.2015.01.005
- Haidar, J. I. (2012). The impact of business regulatory reforms on economic growth. Journal of the Japanese and International Economies, 26, 285-307. https://doi.org/10.1016/j.jjie.2012.05.004
- Jalilian, H., Kirkpatrick, C., & Parker, D. (2007). The impact of regulation on economic growth in developing countries: A cross-country analysis. World Development, 35, 87-103. https://doi.org/10.1016/j.worlddev.2006.09.005
- Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76, 323-329. https://www-jstor-org.library.ez.neoma-bs.fr/stable/1818789
- Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305-360. Doi: 10.1016/0304-405X(76)90026-X
- Kaufmann, D., Kraay, A., & Mastruzzi, M. (2009). Governance matters VIII: aggregate and individual governance indicators, 1996-2008. World Bank Policy Research Working Paper #4978. https://ssrn.com/abstract=1424591
- La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1997). Legal determinants of external finance. Journal of Finance, 52, 1131-1150. https://doi.org/10.1111/j.1540-6261.1997.tb02727.x
- La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106, 1113-1155. Doi: 10.1086/250042
- Lopez-Iturriaga, F. J., & Rodriguez-Sanz, J. A. (2008). Capital structure and institutional setting: a decompositional and international analysis. Applied Economics, 40, 1851-1864. https://doi.org/10.1080/00036840600905233
- Luo, Y., & Junkunc, M. (2008). How private enterprises respond to government bureaucracy in emerging economies: the effects of entrepreneurial type and governance. Strategic Entrepreneurship Journal, 2, 133-153. https://doi.org/10.1002/sej.46
- Myers, S. C. (1977). Determinants of corporate borrowing. Journal of Financial Economics, 5, 147-175. https://doi.org/10.1016/0304-405X(77)90015-0
- Myers, S. C. (1984). The capital structure puzzle. Journal of Finance, 39, 574–592. DOI 10.3386/w1393
- Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13, 187-221. https://doi.org/10.1016/0304-405X(84)90023-0
- Oztekin, O. (2015). Capital structure decisions around the world: which factors are reliably important? Journal of Financial and Quantitative Analysis, 50, 301-323. https://doi.org/10.1017/S0022109014000660
- Park, S. H., Suh, J., & Yeung, B. (2013). Do multinational and domestic corporations differ in their leverage policies? Journal of Corporate Finance, 20, 115-139. https://doi.org/10.1016/j.jcorpfin.2012.08.001
- Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. Journal of Finance, 50, 1421-1460. https://doi.org/10.1111/j.1540-6261.1995.tb05184.x
- Shah, A., Shah, H. A., Smith, J. M., & Labianca, G. J. (2017). Judicial efficiency and capital structure: An international study. Journal of Corporate Finance, 44, 255-274. https://doi.org/10.1016/j.jcorpfin.2017.03.012
- Shyam-Sunder, L., & Myers, S. C. (1999). Testing static tradeoff against pecking order models of capital structure. Journal of Financial Economics, 51, 219-244. https://doi.org/10.1016/S0304-405X(98)00051-8
- Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. Journal of Finance, 43, 1-19. https://doi.org/10.1111/j.1540-6261.1988.tb02585.x
- Wald, J. K. (1999). How firm characteristics affect capital structure: an international comparison. Journal of Financial Research, 22, 161-187. https://doi.org/10.1111/j.1475-6803.1999.tb00721.x