Capital Structure in the Spanish Chemical Industry: How Does the Financial Crisis Affect?

Càmara‐Turull, Xavier; Sorrosal-Forradellas, M. Teresa; Izquierdo, María Ángeles Fernández

doi:10.1142/9789814415774_0023

Cited by 1 publication

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A second study analysed the 140 firms that survived from the same sample during the period between 2007 and 2010 (bankrupt companies and those that had undergone corporate merger and acquisition (M&A) processes were excluded). As a result of the financial crisis, risk became a key variable in explaining the volume of corporate debt (Cámara-Turull et al, 2012).…”

Section: The Incidence Of the Financial Crisismentioning

confidence: 99%

Analysing capital structure of spanish chemical companies using self-organizing maps

Càmara‐Turull

Izquierdo²,

Sorrosal-Forradellas

2017

View full text Add to dashboard Cite

Purpose This paper aims to analyses the capital structure of the Spanish chemical industry during the period between 1999 and 2013, with a twofold objective. First, to determine whether the assumptions of pecking order theory are fulfilled throughout the study's timeframe. Second, by using data covering the years before the crisis and the worst years thereof, this study shows how the crisis has affected the capital structure of the companies included in this sample. Design/methodology/approach A particular kind of unsupervised neural network, self-organizing maps, is applied. This methodology allows to cluster firms avoiding the need to establish relationships between the different variables involved in the problem beforehand. Findings Companies are clustered into groups with different degrees of accomplishment of the pecking order theory. The hypothesis about risk is the one that experience a greater variation in the period before and after the crisis. Moreover, companies' capital structure has been lightly disrupted by the crisis. Originality/value The originality of this paper lies in applying an unprecedented methodology to the problem of capital structure. Therefore, the capital structure problem can be approached without setting any function relationship previously.

show abstract

Section: The Incidence Of the Financial Crisismentioning

confidence: 99%