Capital structure determinants : the evidence from listed and unlisted Dutch firms

The capital structure of firms listed on stock exchanges has received extensive coverage in the scientific literature. This study analyzes the capital structure antecedents of listed and unlisted firms, while using panel data from Dutch companies. The evidence suggests that unlisted firms tend to have more leverage and prefer short-term liabilities. Profitability, earnings volatility, size, growth in assets as well as the collateral value of assets have been discovered to be important determinants of capital structure for the listed and unlisted firms in the Netherlands. It was also found that leverage of private firms is more sensitive to firm profitability, and less sensitive to size and tangibility. The empirical results are in line with previous studies and mainly support arguments made by the Pecking Order Theory.