A Survey of Research on the Effect of Tangible Assets on Capital Structure

DOI

10.2991/978-94-6463-036-7_149How to use a DOI?

Keywords

Capital structure; Tangible assets; Collateral; Pecking-order theory; Trade-off theory; Leverage ratio

Abstract

This paper provides an overview of the literature that investigates on the influence of tangible assets or collateral on capital structure. Previous studies suggest a consistent conclusion that leverage ratio is positively affected by tangible assets. The trade-off theory can well explain the actual relationship, while the pecking order theory makes the opposite prediction. Other theories include the contract incompleteness theory states the relation from agency problem. This study intends to give a list of existing works and possibly offer new research ideas.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Wenxi Zhang
PY  - 2022
DA  - 2022/12/31
TI  - A Survey of Research on the Effect of Tangible Assets on Capital Structure
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 1016
EP  - 1020
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_149
DO  - 10.2991/978-94-6463-036-7_149
ID  - Zhang2022
ER  -