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Capital structure choice in European Union: evidence from the construction industry

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  • Andreas Feidakis
  • Antonios Rovolis

Abstract

In this article, we examine the determinants of the capital structure of large listed European construction firms from 1996 to 2004. We investigate if there are solid and mutual factors that can characterize the capital structure of large construction firms. We identify nine factors-validated by many theories from the literature of finance-that give reasonable results. The existence of such factors provides strong evidence that the European Union converges, despite the different particular country characteristics, the corporate financial decisions of large listed firms in the construction industry.

Suggested Citation

  • Andreas Feidakis & Antonios Rovolis, 2007. "Capital structure choice in European Union: evidence from the construction industry," Applied Financial Economics, Taylor & Francis Journals, vol. 17(12), pages 989-1002.
    • Handle: RePEc:taf:apfiec:v:17:y:2007:i:12:p:989-1002
    DOI: 10.1080/09603100600749311
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    References listed on IDEAS

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    1. Lincoln, Mervyn, 1984. "An empirical study of the usefulness of accounting ratios to describe levels of insolvency risk," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 321-340, June.
    2. Chang Woon Nam & Doina Radulescu & Doina Maria Radulescu, 2004. "Does Debt Maturity Matter for Investment Decisions?," CESifo Working Paper Series 1124, CESifo.
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    Cited by:

    1. Florinita Duca, 2012. "What Determines The Capital Structure Of Listed Firms In Romania," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(3a), pages 523-531, September.
    2. Samuel Nduati Kariuki & Charles Guandaru Kamau, 2014. "Determinants of Corporate Capital Structure among Private Manufacturing Firms in Kenya: A Survey of Food and Beverage Manufacturing Firms," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 49-62, July.
    3. Khaled Ba-Abbad & Nurwati Ashikkin Ahmad-Zaluki, 2012. "The Determinants of Capital Structure of Qatari Listed Companies," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(2), pages 93-108, April.
    4. Muhammad Naveed, 2015. "Capital Structure Dynamics and Sensitivity Analysis: A Case of Developing Country?," Proceedings of International Academic Conferences 2603875, International Institute of Social and Economic Sciences.
    5. Palaniappan Gurusamy, 2024. "Corporate Ownership Structure and Its Effect on Capital Structure: Evidence from BSE Listed Manufacturing Companies in India," IIM Kozhikode Society & Management Review, , vol. 13(2), pages 135-153, July.
    6. Erdinc Karadeniz & Serkan Yilmaz Kandir & Omer Iskenderoglu & Yildirim Beyazit Onal, 2011. "Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 1(1), pages 1-11.
    7. Pavlína Pinková & Sylvie Riederová, 2013. "Inter- and intra-industry variations of capital structure in the Czech manufacturing industry," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(7), pages 2623-2629.
    8. repec:jes:wpaper:y:2012:v:4:p:523-531 is not listed on IDEAS

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