How Relevant are Institutional Factors in Determining Capital Structure: Evidence from MENA Countries

Abstract:

We examine the determinants of capital structure from institutional environment perspective controlling for firm-specifics factors for 546 listed companies in the MENA region over the period from 2003 to 2011. By employing a modified DPD-GMM model, results show that institutional environment influence the capital structure, more specifically, on the long-term leverage.
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