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SHIGEO TAKAMI
Department Department of Business Administration, Faculty of Business Administration Position Professor |
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| Language | Japanese |
| Publication Date | 2014/08 |
| Type | |
| Peer Review | Peer reviewed |
| Title | The factors determining a firm to continue zero leverage policy |
| Contribution Type | |
| Journal | Securities Analysts Journal |
| Publisher | The Securities Analysis Association of Japan |
| Volume, Issue, Page | pp.72-82 |
| Details | The phenomena of complete zero leverage is rater an exceptional, comprising less than seven percent share, as far as we investigated Japanese manufacturing firms. The result of logistic regression analysis indicates the most important factor of becoming zero leverage is being complete zero leverage status in the previous year; on the contrary, the increase of capital expenditure or the decrease of ROA inhibits zero leverage. As we focus on 20 firms continuing zero leverage for ten fiscal years, the shareholders of those firms tend to be owner-founders or Japanese major firms, with an intention to continue zero leverage status. |