...Hasan Tekin; Ali Yavuz Polat Purpose The authors investigate the impact of governance on the leverage of East Asian firms in the financial crisis context, in order to understand the puzzle whether debt acts as a substitute for governance or an outcome of the governance mechanism. Design...

... and Tressel (2015) that examines the evolution of corporate capital structure during the global financial crisis and its consequences. The study found that corporate leverage and debt maturity declined in developed and developing countries during the crisis, even in states that did not experience a crisis...

... the likelihood of financial distress which leads to bankruptcy. The empirical literature on size as a potential determinant of capital structure has yielded mixed results. A number of studies document strong positive associations between size and leverage (Booth et al., 2001 ; Deesomsak et al...