Profitability
|
Return on assets |
ROA |
Operating income (1-tax)/Total assets |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
|
- |
+ |
Return on equity |
ROE |
Net income/Equity |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
|
- |
+ |
Free cash flow |
FCL |
[EBITx(1-Tax)+depreciation-Capex]/Total assets |
Kim and Sorensen (1986)Kim, W. S., & Sorensen, E. H. (1986). Evidence on the impact of the agency costs of debt on corporate debt policy. Journal of Financial Quantitative Analysis, 21(2), 131-144. doi:10.2307/2330733 https://doi.org/10.2307/2330733...
and Keefe and Yaghoubi (2016)Keefe, M. O., & Yaghoubi, M. (2016). The influence of cash flow volatility on capital structure and the use of debt of different maturities. Journal of Corporate Finance, 38, 18-36. doi:10.1016/j.jcorpfin.2016.03.001 https://doi.org/10.1016/j.jcorpfin.2016....
|
- |
+ |
Dividends |
DIV |
Dividends paid/Net income |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
|
+ |
- |
Firm size
|
Total assets |
LTA |
Log of assets |
Lemmon et al. (2008)Lemmon, M. T., Roberts, M., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross-section of corporate capital structure. The Journal of Finance, 63, 1-37., Frank and Goyal (2003)Frank, M., & Goyal, V. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67, 217-248., and Sonza and Kloeckner (2014)Sonza, I. B., & Kloeckner, G. O. (2014). Governança em estruturas proprietárias concentradas: Novas evidências para o Brasil. Revista de Administração, 49(2), 240-250.
|
|
+ |
Net sales |
LR |
Log of net sales |
Frank and Goyal (2003)Frank, M., & Goyal, V. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67, 217-248. and Sonza and Kloeckner (2014)Sonza, I. B., & Kloeckner, G. O. (2014). Governança em estruturas proprietárias concentradas: Novas evidências para o Brasil. Revista de Administração, 49(2), 240-250.
|
|
+ |
Equity |
LPL |
Log of equity |
Sonza and Kloeckner (2014)Sonza, I. B., & Kloeckner, G. O. (2014). Governança em estruturas proprietárias concentradas: Novas evidências para o Brasil. Revista de Administração, 49(2), 240-250.
|
|
+ |
Mature firms |
Mat |
Dummy: 1 - companies that traded in the stock market at least five years 0 - otherwise |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
|
|
+ |
Growth opportunities
|
Market-to-book ratio |
MB |
Market value/Equity |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37. and Lemmon et al. (2008)Lemmon, M. T., Roberts, M., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross-section of corporate capital structure. The Journal of Finance, 63, 1-37.
|
- |
|
Change in logassets |
LMA |
Log of (total assets - total assets t-1) |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37.
|
|
+ |
Capex |
Capex |
Capital expenditure/Total assets |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37. and Axelson et al. (2013)Axelson, U., Jenkinson, T., Strömberg, P., & Weisbach, M. S. (2013). Borrow cheap, buy high? The determinants of leverage and pricing in buyouts. The Journal of Finance, 68, 2223-2267. doi:10.1111/jofi.12082 https://doi.org/10.1111/jofi.12082...
|
+ |
|
Q Tobin |
Q |
Market value/Total assets |
Futema, Basso, and Kayo(2009)Futema, M. S., Basso, L. F., & Kayo, E. K. (2009). Estrutura de capital, dividendos e juros sobre o capital próprio: testes no Brasil. Revista Contabilidade & Finanças-USP, 20(49), 44-62. doi:10.1590/S1519-70772009000100004 https://doi.org/10.1590/S1519-7077200900...
|
- |
|
Nature of assets
|
Tangibility |
Tang |
(Inventories + fixed assets)/Total assets |
Kieschnick and Moussawi (2018)Kieschnick, R., & Moussawi, R. (2018). Firm age, corporate governance, and capital structure choices. Journal of Corporate Finance, 48, 597-614. doi:10.1016/j.jcorpfin.2017.12.011 https://doi.org/10.1016/j.jcorpfin.2017....
and Lemmon et al. (2008)Lemmon, M. T., Roberts, M., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross-section of corporate capital structure. The Journal of Finance, 63, 1-37.
|
|
+ |
Tax
|
Tax benefits |
BF |
Tax = Income tax x Financial expenditure/Total assets |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37. and Lemmon et al. (2008)Lemmon, M. T., Roberts, M., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross-section of corporate capital structure. The Journal of Finance, 63, 1-37.
|
|
+ |
Risk
|
Risk |
RIS |
Standard error of EBIT/Total assets |
Frank and Goyal (2009)Frank, M., & Goyal, V. (2009). Capital structure decisions: Which factors are reliably important? Financial Management, 38(1), 1-37. and Lemmon et al. (2008)Lemmon, M. T., Roberts, M., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross-section of corporate capital structure. The Journal of Finance, 63, 1-37.
|
+ |
- |