An attempt is made to analyze the important determinants of capital structure in the U.S.manufacturingindustries. The study extends the empirical works on the determinants of capital structure in three ways. First, apart from taking all the relevant independent variables as determinants, it sheds new light on the relationship between business risk and leverage. Second, it shows a rather insignificant role of industry dummies as a proxy for industry characteristics in capital structure determination. Third, it uses both thedata-setsof Compustat and Fortune 500 largest firms in analyzing the determinants of capital structure, not attempted before.
"The Determinants of Capital Structure,"
American Business Review: Vol. 18:
2, Article 3.
Available at: https://digitalcommons.newhaven.edu/americanbusinessreview/vol18/iss2/3