CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION
This exploratory study examines the impact of the formation of the European Union(EU) at the microeconomic level. Specifically, the study investigates the impact on a firm’s capital structure by investigating whether capital structures are becoming more homogeneous across 10 Eu countries over time,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
People & Global Business Association (P&GBA)
2007-03-01
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| Series: | Global Business and Finance Review |
| Subjects: | |
| Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150623100502-QT1FA.pdf |
| _version_ | 1798027991588012032 |
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| author | Dev Prasad Yash Puri Walayet Khandaker Kent Baker |
| author_facet | Dev Prasad Yash Puri Walayet Khandaker Kent Baker |
| author_sort | Dev Prasad |
| collection | DOAJ |
| description | This exploratory study examines the impact of the formation of the European Union(EU) at the microeconomic level. Specifically, the study investigates the impact on a firm’s capital structure by investigating whether capital structures are becoming more homogeneous across 10 Eu countries over time, and whether capital structures are becoming more homogeneous across 10 Eu countries over time, and whether a dominant-country effect exists. The results suggest movement toward convergence in capital structures across EU economies during the period examined. This evidence, which is particularly true for industrial firms, indicates an increase in homogeneity for companies in this economic community. The evidence also indicates the presence of a dominant-country effect. Specifically, the capital structures in the smaller Eu economies tend to converge on the French capital structure. These changes in capital structure have implications for investor due to changes in the value of the firm as well as policy makers due to the changed need of the market microstructure. |
| first_indexed | 2024-04-11T19:00:37Z |
| format | Article |
| id | doaj.art-4d8ffd693f804b73a295810bd05c9f84 |
| institution | Directory Open Access Journal |
| issn | 1088-6931 2384-1648 |
| language | English |
| last_indexed | 2024-04-11T19:00:37Z |
| publishDate | 2007-03-01 |
| publisher | People & Global Business Association (P&GBA) |
| record_format | Article |
| series | Global Business and Finance Review |
| spelling | doaj.art-4d8ffd693f804b73a295810bd05c9f842022-12-22T04:08:01ZengPeople & Global Business Association (P&GBA)Global Business and Finance Review1088-69312384-16482007-03-01121122CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNIONDev Prasad0Yash Puri1Walayet Khandaker2Kent Baker3University of Massachusetts LowellUniversity of Massachusetts LowellUniversity of EvansvilleAmerican UniversityThis exploratory study examines the impact of the formation of the European Union(EU) at the microeconomic level. Specifically, the study investigates the impact on a firm’s capital structure by investigating whether capital structures are becoming more homogeneous across 10 Eu countries over time, and whether capital structures are becoming more homogeneous across 10 Eu countries over time, and whether a dominant-country effect exists. The results suggest movement toward convergence in capital structures across EU economies during the period examined. This evidence, which is particularly true for industrial firms, indicates an increase in homogeneity for companies in this economic community. The evidence also indicates the presence of a dominant-country effect. Specifically, the capital structures in the smaller Eu economies tend to converge on the French capital structure. These changes in capital structure have implications for investor due to changes in the value of the firm as well as policy makers due to the changed need of the market microstructure.http://www.gbfrjournal.org/pds/journal/thesis/20150623100502-QT1FA.pdfcapital structure convergencedominant-country effecteuropean unioncapital structuremarket microstructure |
| spellingShingle | Dev Prasad Yash Puri Walayet Khandaker Kent Baker CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION Global Business and Finance Review capital structure convergence dominant-country effect european union capital structure market microstructure |
| title | CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION |
| title_full | CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION |
| title_fullStr | CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION |
| title_full_unstemmed | CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION |
| title_short | CAPITAL STRUCTURE CONVERGENCE AND A DOMINANT-COUNTRY EFFECT: A CASE STUDY OF THE EUROPEAN UNION |
| title_sort | capital structure convergence and a dominant country effect a case study of the european union |
| topic | capital structure convergence dominant-country effect european union capital structure market microstructure |
| url | http://www.gbfrjournal.org/pds/journal/thesis/20150623100502-QT1FA.pdf |
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