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What are the most important industrial and national capital structure patterns exhibited globally? (Describe at least...

What are the most important industrial and national capital structure patterns exhibited globally? (Describe at least four). How do these compare to dividend patterns observed around the world?

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Answer #1

Certain industries appear to have high levels. These for the most part are mature low growth industries with cash flows and tangible assets.

High tech and high growth industries that are highly cyclical with uncertain cash flow tend to have lower levels of debt in their capital structures.

Firms that are riskier, with intangible assets will have less debt in their capital structures.

Patterns appear across countries as well. Firm in developing countries borrow less than those in developed countries. This is consistent with the concept that higher risk, ventures taken on less long-term debt. Differences in leverage may reflect difference in the industrial composition of national economies, as well as historical, institutional and cultural factors.

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