The Impact of Product Warranties on the Capital Structure of Australian Firms
26 Pages Posted: 16 Aug 2011 Last revised: 30 Nov 2011
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The Impact of Product Warranties on the Capital Structure of Australian Firms
The Impact of Product Warranties on the Capital Structure of Australian Firms
Date Written: November 30, 2011
Abstract
This paper examines the impact of Australian firms. warranty policies on their capital structures. The sample consists of 261 firms and 937 firm-years for Australian public firms for the period 2007-2010. The results suggest that warranty policies impact on Australian firms. capital structures. Consistent with earlier Australian studies, size and asset tangibility are positively related to leverage; growth and profitability are negatively related to leverage; and earnings volatility and industry concentration are unrelated to leverage. In addition to these previously identified relationships, the firms. warranty policies have a negative impact on leverage.
Keywords: warranties, capital structure, leverage
JEL Classification: G22, G32
Suggested Citation: Suggested Citation
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