types of debt have different characteristics and requirements for firms. This paper aims to identify the main determinants of the composition of corporate funding. In addition to bank and trade credit, two relevant funding sources, we also include in the analysis tax liabilities and loans from shareholders or intragroup operations. The results suggest that some firms’ characteristics present a similar impact on alternative funding sources, such as profitability, while others show a heterogeneous effect. Moreover, the results suggest the relevance of variables related to firms’ operational activity and business risk in funding structure.
|Number of pages||26|
|Journal||Banco de Portugal Economic Studies|
|Publication status||Published - Jan 2006|