How did the Global Financial Crisis and the Greek Government-debt Crisis Affect Capital Structure? Empirical Evidence from Greek Listed Firms

Absztrakt (kivonat)

This study aims to investigate the impact of the global financial crisis of 2008- 2009 and the Greek government-debt crisis on the capital structure of Greek listed firms. 117 Greek listed firms were used for the non-crisis period (2002-2007), the global financial crisis period (2008-2009) and the Greek government-debt crisis period (2010- 2017). I employed dynamic panel data analysis in order to examine the effect of the global financial crisis and the Greek government-debt crisis on determinants of capital structure. My results indicate that the leverage that Greek listed firms used increased during both the global financial crisis and the Greek government debt crisis period. I also found determinants of capital structure changed during the global financial crisis and the Greek government crisis period. During the non-crisis period, only profitability and firm size are significant determinants of capital structure. However, during the global financial crisis and the Greek government-debt crisis period, all the determinants become significant. Furthermore, the capital structure determinants during the Global financial crisis differ from the determinants during the Greek government-debt crisis. The study further suggests some implications for financial managers, policymakers and researchers.