Market power versus capital structure determinants: Do they impact leverage?

Figures & data

Table 1. Descriptive analysis of market power and determinants of capital structure

Variables	Observations	Mean	SD	Minimum	Maximum
LEV	1760	0.5118	0.1910	0.00	1.08
SIZE	1760	14.833	1.9309	6.15	20.12
TANG	1760	0.4960	0.2598	0.00	1.09
PROF	1760	0.1085	0.1546	−0.77	0.93
DPO	1760	0.0447	0.0229	0.01	0.17
LIQ	1760	1.0256	0.4977	−0.91	2.62
MP	1760	0.0527	0.0310	0.01	0.30

Table 2. Correlation matrix of market power and determinants of capital structure

Variable	LEV	SIZE	TANG	PROF	DPO	LIQ	MP
LEV	1
SIZE	−0.212^**	1
TANG	0.038	−0.203^**	1
PROF	0.052^*	0.225^**	−0.107^**	1
DPO	0.073^**	−0.027	0.007	0.006	1
LIQ	−0.319^**	0.227^**	−0.338^**	0.261^**	−0.039	1
MP	0.068^**	−0.065^**	0.004	0.049^*	0.016	−0.030	1

Note: Dependent variable: LEV.

* Level of significance at p < 0.05.

** Level of significance at p < 0.01.

Table 3. Regression analysis of market power and determinants of capital structure

Independent variable	Coefficient	t-value	P-value
SIZE	−0.019^**	−8.157	0.000
TANG	−0.075^**	−4.332	0.001
PROF	0.215^**	7.533	0.000
DPO	0.446^*	2.447	0.025
LIQ	−0.135^**	−14.600	0.000
MP	0.221^**	1.638	0.006
R^2	0.29
Adj. R^2	0.27
F-value	47.23^**		0.000

Note: Dependent variable: LEV.

^* Level of significance at p < 0.05.

^** Level of significance at p < 0.01.