Anjos, FernandoHüsemann, Luca Lisanne2024-10-212024-10-212024-01-112023-12-17http://hdl.handle.net/10362/173785Using Compustat data from 2003 to 2022, this paper studies the effect of asset tangibility on capital structure for 57 distinct countries. Carrying out an empirical analysis yields that (1) there is a positive relationship between asset tangibility and capital structure, (2) cross-country variation in the effect of asset tangibility on capital structure may be explained by differences in a country’s creditor-friendliness of bankruptcy laws and differences in a country’s interpersonal trust level, and (3) the effect of asset tangibility on capital structure is more pronounced for EU-firms, as compared to US-firms.engCapital structureAsset tangibilityCreditor-friendliness of bankruptcy lawsInterpersonal trustmaster thesis203604857