As financial markets become more global, the question arises whether any country specific considerations are still relevant for insurance companies’ capital structure. This research examines this question with firm-level data across a broad range of countries including those in developing markets. What we find is that the optimal capital structure of insurance companies is not homogeneous acros...

Capital goods are embodied knowledge of how to produce. Therefore, capital development is a learning process, through which knowledge gets embodied in new capital goods. Because the necessary knowledge is dispersed among many people who must interact to communicate their particular, often tacit knowledge, capital development is a social process. Because this interaction takes time and continual...

Large heterogeneity has prevented current capital structure research from explaining variations in firms’ capital structures to a satisfactory degree. We find that firms generally fall into two categories based on their capital structure policies. One category consists of larger firms that tend to pay dividends, and includes almost all zero-leverage firms in the sample. These firms tend to resp...

The intensity of competition in business markets is to the extent that even the slightest strategic mistakes will lead to the failure of the organizations. The lack of knowledge and implementation of appropriate competitive strategies in such markets and, on the other hand, the failure to review the effects of these strategies on the types of cash flows in diverse capital structures is no also ...

Since the financial crisis burst out in 2008, the capital structure of banking has become the important question which the theorists pay close attention to, so this article focused on China Listed Commercial Bank’s capital structure. Based on a summary on the capital structure theory, this article analyzed the definition and characteristics of the banking capital structure. Besides, this articl...

While existing literature assumes that the human capital intensity of professional services leads to small and flimsy firms, several professional services feature large, long-lived firms. To develop insights about firm size and industry structure in human capital intensive industries, I analyze the structure and evolution of the advertising industry. Drawing on a range of quantitative and quali...

We study the implications of credit market frictions for the dynamics of corporate capital structure and the risk of default of corporations. To do so, we develop a dynamic capital structure model in which firms face uncertainty regarding their ability to raise funds in credit markets and have to search for investors when seeking to adjust their capital structure. We provide a general analysis ...