Abstract
The study aims to verify whether and how the relation between corporate material and financial decisions is affected by the firm size and its industrial classification. The relation between corporate operational risk—reflected in asset tangibility—and financial risk—reflected in capital structure—is explored by estimating panel data models with interactions between variables so as to identify the industry and size effect in the considered relationship. The study, based on 12 EU countries in the period 2000–2017, contributes to the existing literature by capturing the indirect effects of size and industry in the asset structure–capital structure relation. Findings highlight the relevance of both effects, but also indicate the greater importance of the industrial classification for the considered relationship.
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Koralun-Bereźnicka, J. (2021). Industry and Size Effect in the Relation Between Corporate Material and Financial Decisions: Findings from the EU Countries. In: Jajuga, K., Locarek-Junge, H., Orlowski, L.T., Staehr, K. (eds) Contemporary Trends and Challenges in Finance . Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-73667-5_11
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DOI: https://doi.org/10.1007/978-3-030-73667-5_11
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