Capital structure of internet companies : case study

Miglo, A; Lee, Z; Liang, S

Abstract

The financing decisions and capital structure of Internet companies are analyzed, and observed findings are related to the common capital structure theories. Large Internet companies usually have low debt, and small Internet companies have high debt. It was found that the trade-off theory of capital structure, pecking order theory, market timing theory, and other theories cannot individually explain a firm's capital structure. However, they can complement each other in describing some patterns of observed behavior. A number of recommendations for capital structure theory and practice are suggested.

Citation

Miglo, A., Lee, Z., & Liang, S. (2014). Capital structure of internet companies : case study. Journal of Internet Commerce, 13(3-4), 253-281. https://doi.org/10.1080/15332861.2014.961348

• Journal Article Type: Article
• Online Publication Date: Oct 16, 2014
• Publication Date: Oct 16, 2014
• Deposit Date: May 25, 2021
• Journal: Journal of Internet Commerce
• Print ISSN: 1533-2861
• Publisher: Routledge
• Volume: 13
• Issue: 3-4
• Pages: 253-281
• DOI: https://doi.org/10.1080/15332861.2014.961348
• Publisher URL: https://doi.org/10.1080/15332861.2014.961348
• Related Public URLs: https://www.tandfonline.com/toc/wico20/current
• Additional Information: Access Information : The Accepted Manuscript of this article is available Open Access at: http://www.open-access.bcu.ac.uk/6177/1/InternetCompaniesPublicat.pdf