Firm Specific Determinants of Capital Structure - Is Firm's Leverage Determined as a Residual of other Financial Decisions?
This thesis empirically investigates the question if US firm’s capital structures are stable over longer periods of time and which firm characteristics drive optimal leverage. The analysis is based on a Compustat panel data sample consisting of 2,900 US firms between 1985 and 2016. After analyzing the stability of firm’s capital structure via a “narrow band” and a “relative bucket approach” an err
