The Effect of Firm-Specific Variables and Macroeconomic Condition on Capital Structure-Evidence of Non-Linear Behaviors
This paper models the dynamics of capital structure listed on the NYSE and NASDAQ during 1995 to 2010. The subsamples classified by given leverage level and specified periods of time are tested. The main contribution is that macroeconomic conditions and firm characteristics are incorporated regressed for non-linearity test. We provide the evidence of non-linear patterns among low leverage and high
