Download or read book Corporate Optimal Debt Structure written by Ali Rasulov and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research aims to examine, through the capital structure prism, the financial output of industries in Western Europe. Although scientists have been motivated for several years by the subject of the structure of corporate capital, very little research has been done on the sample of industries in Western Europe. Identifying the key factors affecting the level of leverage in selected Western European industries is the main objective of this study. The data covers the period from 2011 to 2019. The main factors that are chosen for this analysis are leverage, profitability, risk, growth, capital expenditure, firm's value, and effective tax rate. A cross-sectional and panel data regression is performed to get the empirical results. This study also explains how the ideal debt structure relies on company features such as its software, its credit rating, and its asset market (P. Bolton, and D. Scharfstein., 1996). As presented by Boyce and Kalotay (1979) and Brick and Ravid (1985 and 1991), because of tax-related advantages, the use of long-term debt is preferable. Barclay, M. J., Smith, Jr, C. W., & Morellec, E. (2006) also present that if a tax advantage to debt and non-stochastic interest rates exist, long-term debt will increase the present value of the tax benefits of debt if the term structure of interest rates, adjusted for the risk of default, is increasing. Along with this research, the previous case studies based on the capital structure by different authors are discussed as well. This thesis empirically aims at debt specialization, corporate optimal debt structure choices, and how different profitability levels affect the organizational determinants.