Capital structure under collusion
Resumen:
We study the financial leverage of firms that collude by forming a cartel. We find that cartel firms have lower leverage ratios during collusion periods, consistent with the idea that reductions in leverage help increase cartel stability. Cartel firms have a surprisingly large economic footprint (they represent more than 20% of the total market capitalization in the U.S.), so understanding their decisions is relevant. Our findings show that anti-competitive behavior has a significant effect on capital structure choices. They also shed new light on the relation between profitability and financial leverage.
| 2016 | |
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Capital structure Financial leverage Financial policies Collusion Cartels Trigger strategies |
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| Inglés | |
| Universidad de Montevideo | |
| REDUM | |
| https://hdl.handle.net/20.500.12806/1352 | |
| Acceso abierto | |
| Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
