Capital structure determinants and the impact of the 2008 financial crisis: evidence from North America

Abstract

This paper aims to investigate the capital structure determinants of North American firms and to analyze the impact of the 2008 financial crisis. To conduct the study, a panel data set from 2000 to 2019 comprisingabout434 North American was used and 3 models were estimated. The empirical results indicate that size and market-to-book value positively influence leverage, whereas profitability, growth opportunities, tangibility, and liquidity influence it negatively. Non-debt tax shields do not impact firm leverage. Regarding the crisis effect, the results demonstrate that it modified the influence that size, profitability, liquidity, and market-to-book value have on leverage.