The results of how firm size and investment opportunities proved to be inconclusive in how they affect leverage.
“There is no significant difference to the Determinants of Capital Structure of Developing Countries to those of Developed Countries” Capital structure refers to the way a firm chooses to finance its assets and investments through some combination of equity, debt, or internal funds.
The second essay studies the financing behaviour of Hospital Corporation of America (HCA) from 1990 to 2013 and demonstrates variation in HCA’s market and book leverage ratios due to 1) mergers and acquisitions and divestitures that change the firm’s total assets, 2) share buybacks, and 3) leveraged buyouts and public offerings that change the firm’s ownership.
The paper scrutinizes variation in HCA’s market and book leverage ratios independently as well as relative to each other.
This paper will therefore answer the following research questions; Does firms leverage significantly differ across developing and developed countries?