A Comparison of Capital Structure Determinants: The United States and The Republic of Korea

Hanjoon Kim; Berger, Paul D.
January 2008
Multinational Business Review (St. Louis University);Winter2008, Vol. 16 Issue 1, p79
Academic Journal
The article examines the determinants of capital structure in the U. S. and the Republic of Korea. It aims to describe differences in determinants of capital structure between a developed and a less developed country. Data was gathered from the period between 1987 and 1991 wherein there was stability in the Korean market. The study discusses variables including company size, profit, growth, business-risk and non-debt tax shields in relation to market value based leverage ratio. An overview of the study is also provided.


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