Dependent variable
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HHI |
Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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HHI is equal to 0 if a company simultaneously employs all seven types of debt in equal proportion; otherwise, if a company employ just one type of debt, the HHI is equal to 1. |
Independent variables
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Financial constraint (credit rating) - H1
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Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Rauh and Sufi (2010Rauh, J. D., & Sufi, A. (2010). Capital structure and debt structure. The Review of Financial Studies, 23(12), 4242-4280.) |
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Dummy equal to 1 if the company has a credit rating for at least one year of the time series, and 0 otherwise. |
Information asymmetry (R&D) - H2
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Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.) |
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Ration between R&D expenses and TA. |
Default costs - Independent variable - H3
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Expected bankruptcy costs (TANG) - H3
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Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.) |
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Ratio between FA and TA. |
Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ratio between the sum of FA and I in relation to TA. |
Expected bankruptcy costs (Risk - CF VOL or EBIT VOL) - H3
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Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.) |
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Ratio between CF and TA. |
Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ratio of the difference between EBIT and its average (EBIT) in relation to TA. |
Control variables
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IPO |
Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.), Khan et al. (2017Khan, K. I., Qadeer, F., Mahmood, S., Rizavi, S. S. (2017). Reasons for debt specialization: Understanding the perspectives of small and large organizations. The Lahore Journal of Business, 6(1), 93-110., 2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.) |
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Time in years since the company's IPO. |
SIZE |
Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141.), Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ln of TA. |
MB |
Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.), Rauh and Sufi (2010Rauh, J. D., & Sufi, A. (2010). Capital structure and debt structure. The Review of Financial Studies, 23(12), 4242-4280.) |
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Ratio between the sum of the MV equity, TD, and PS in relation to TA. |
Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ratio between the MV and the book value of equity. |
LEV |
Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.), Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ratio between TD and TA. |
DIV |
Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141.), Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.) |
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Dummy equal to 1 if the firm pays dividends, and 0 otherwise. |
ROA |
Colla et al. (2013Colla, P., Ippolito, F., & Li, K. (2013). Debt structure and debt specialization. The Journal of Finance, 68(5), 2117-2141., 2020Colla, P., Ippolito, F., & Li, K. (2020). Debt structure. Annual Review of Financial Economics, 12, 193-215.), Platikanova and Soonawalla (2020Platikanova, P., & Soonawalla, K. (2020). Who monitors opaque borrowers? Debt specialisation, institutional ownership, and information opacity. Accounting & Finance, 60(2), 1867-1904.), Rauh and Sufi (2010Rauh, J. D., & Sufi, A. (2010). Capital structure and debt structure. The Review of Financial Studies, 23(12), 4242-4280.) |
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Ration between EBITDA and TA. |
Khan et al. (2021Khan, K. I., Qadeer, F., Mata, M. N., Chavaglia, J. A., Neto, Sbir, Q.U.A., Martins, J. N., & Filipe, J. A. (2021). Core predictors of debt specialization: A new insight to optimal capital structure. Mathematics, 9(9), 975.), Póvoa and Nakamura (2014Póvoa, A. C. S., & Nakamura, W. T. (2014). Homogeneidade versus heterogeneidade da estrutura de dívida: um estudo com dados em painel. Revista Contabilidade & Finanças, 25(64), 19-32.) |
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Ration between NP and TA. |