Leverage variation and its relation to the industry characteristics
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/22123 |
Resumo: | In this study we have focused on North American companies from 1974 until 2015. Based on this sample, it was our objective, to better understand the three dimensions of capital structure variation: within-firm, within-industry and between industries. We concluded that most of the variation in financial structures arises from within-industries rather than between industries. Additionally, in the period considered, within-industry variation was interpreted as the one that showcased the greatest increase, (43%) Taking into consideration these intriguing results, we decided to regress leverage ratios on industry leverage medians, which confirmed the little importance of industry in explaining firm financial structure. In order to better understand how leverage is organized within the different industries, we developed the concept of “level” and “consistency”, reaching a new stylized fact in this area of research, by concluding that industries which portray the highest or the lowest capital structures’ dispersion tend to remain this way for long periods of time. Finally, we proved that capital structure variation is associated to firms in industries with shorter longevities, higher probabilities of default, as well as, to higher leverage ratios. |
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Leverage variation and its relation to the industry characteristicsDomínio/Área Científica::Ciências Sociais::Economia e GestãoIn this study we have focused on North American companies from 1974 until 2015. Based on this sample, it was our objective, to better understand the three dimensions of capital structure variation: within-firm, within-industry and between industries. We concluded that most of the variation in financial structures arises from within-industries rather than between industries. Additionally, in the period considered, within-industry variation was interpreted as the one that showcased the greatest increase, (43%) Taking into consideration these intriguing results, we decided to regress leverage ratios on industry leverage medians, which confirmed the little importance of industry in explaining firm financial structure. In order to better understand how leverage is organized within the different industries, we developed the concept of “level” and “consistency”, reaching a new stylized fact in this area of research, by concluding that industries which portray the highest or the lowest capital structures’ dispersion tend to remain this way for long periods of time. Finally, we proved that capital structure variation is associated to firms in industries with shorter longevities, higher probabilities of default, as well as, to higher leverage ratios.Este estudo foca-se em empresas norte americanas para o período entre 1974 e 2015. Com base nesta amostra, pretendemos perceber melhor como é que a variação na estrutura de capital está dividida pelas suas três componentes: dentro da empresa, dentro da indústria e entre indústrias. Concluímos que grande parte da variação nas estruturas de financiamento tem origem dentro das indústrias em vez de entre as indústrias. Ainda em relação ao período da nossa amostra, constatamos que a variação dentro da indústria foi a que teve um maior aumento, de cerca de 43%. Ao obter estes resultados intrigantes, decidimos estimar uma regressão entre os rácios de financiamento e os valores medianos por indústria, acabando este passo por confirmar a pouca importância que a indústria tem em explicar as estruturas de capital. Com o objetivo de perceber melhor como é que a estrutura de capital está organizada dentro das várias indústrias, criámos os conceitos de “level” e “consistency”. Concluímos que as indústrias com maior e menor dispersão do endividamento, tendem a manter-se dessa forma por longos períodos de tempo. Para terminar, mostramos que as indústrias com grande dispersão de financiamento estão associadas a indústrias cujas empresas demonstram : menos anos de vida, maior probabilidade de falência e maiores níveis de endividamento.Bonfim, Diana Carina Ribeiro GuimarãesVeritati - Repositório Institucional da Universidade Católica PortuguesaMoreira, Pedro José Silva Lino de Oliveira2017-05-16T08:02:24Z2017-05-0920172017-05-09T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/22123TID:201703394enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:28:27Zoai:repositorio.ucp.pt:10400.14/22123Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:18:28.990554Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Leverage variation and its relation to the industry characteristics |
title |
Leverage variation and its relation to the industry characteristics |
spellingShingle |
Leverage variation and its relation to the industry characteristics Moreira, Pedro José Silva Lino de Oliveira Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Leverage variation and its relation to the industry characteristics |
title_full |
Leverage variation and its relation to the industry characteristics |
title_fullStr |
Leverage variation and its relation to the industry characteristics |
title_full_unstemmed |
Leverage variation and its relation to the industry characteristics |
title_sort |
Leverage variation and its relation to the industry characteristics |
author |
Moreira, Pedro José Silva Lino de Oliveira |
author_facet |
Moreira, Pedro José Silva Lino de Oliveira |
author_role |
author |
dc.contributor.none.fl_str_mv |
Bonfim, Diana Carina Ribeiro Guimarães Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Moreira, Pedro José Silva Lino de Oliveira |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
In this study we have focused on North American companies from 1974 until 2015. Based on this sample, it was our objective, to better understand the three dimensions of capital structure variation: within-firm, within-industry and between industries. We concluded that most of the variation in financial structures arises from within-industries rather than between industries. Additionally, in the period considered, within-industry variation was interpreted as the one that showcased the greatest increase, (43%) Taking into consideration these intriguing results, we decided to regress leverage ratios on industry leverage medians, which confirmed the little importance of industry in explaining firm financial structure. In order to better understand how leverage is organized within the different industries, we developed the concept of “level” and “consistency”, reaching a new stylized fact in this area of research, by concluding that industries which portray the highest or the lowest capital structures’ dispersion tend to remain this way for long periods of time. Finally, we proved that capital structure variation is associated to firms in industries with shorter longevities, higher probabilities of default, as well as, to higher leverage ratios. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-05-16T08:02:24Z 2017-05-09 2017 2017-05-09T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/22123 TID:201703394 |
url |
http://hdl.handle.net/10400.14/22123 |
identifier_str_mv |
TID:201703394 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131875984277504 |