Niveau: Supérieur, Doctorat, Bac+8
1 Determinants of Leverage and Access to Credit: Evidence on Western and Eastern Europe countries Laurent Weill LARGE, Université Robert Schuman, Institut d'Etudes Politiques, 47 avenue de la Forêt-Noire, 67082 Strasbourg Cedex, France. Phone: 33 3 88 41 77 21 ; Fax: 33 3 88 41 77 78 Abstract: In this paper, we empirically investigate the determinants of leverage in countries from Western Europe and Eastern Europe on a large sample of companies from all sizes. Empirical observation allows us to interpret these variables as the key factors of access to credit after controlling the influence of self-financing. We observe the lack of significance of tested factors in Eastern Europe, in comparison to Western Europe. This result supports the assumption of a different lending behavior of banks in transition countries. This may be explained by the prolongation of old loans or by a higher inefficiency of banks in these countries. JEL Classification: G21, G32, P34 Keywords: corporate finance, transition economies, debt, banks. 1. Introduction This paper aims at analyzing the determinants of leverage on an international sample of companies in several European countries, both developed and transition ones. Our starting point is the observation that the issuance of bond debt and equity capital are not commonly used as sources of financing in European countries.
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- large companies
- countries
- bank accounting
- countries results
- all sizes
- financing
- retained earnings