Presented by

Bayan Arqawi
School of Business
Bond University

Abstract
From both a theoretical and empirical perspective, the determinants of capital structure continue to be a well researched topic in corporate finance. This paper examines the impact of Australian firms’ warranty policies on their capital structures, and thus extends the work of Kale, Meneghetti, & Shahrur (2010) for US firms. The dataset consists of 937 firm-years for Australian public firms for the period 2007-2010. Results of univariate analysis and multivariate regressions suggest that, unlike US firms, warranty policies have weak impact on Australian firms’ capital structures. Consistent with earlier Australian studies, size and asset tangibility are found positively related to leverage; growth and profitability are found to be negatively related to leverage; and earnings volatility and industry concentration are unrelated to leverage.
 

When

02 December 2011
12:00pm - 1:00pm

Where

University Centre, BLD 06_04_03

Contact Information

Doreen Taylor
Research Program Advisor
Faculty of Business
Telephone: +61 7 5595 0213