Determinants of Leverage in Emerging Markets: Empirical Evidence

Yarong Chen, Luca Sensini, Maria Vazquez


The purpose of this paper is to investigate the relationship between leverage and its main determinants in the Argentine context, using the trade-off theory and the pecking order theory. Studies that have addressed this issue in emerging economies are still quite rare and the results are incomplete and controversial. To identify the companies to be analyzed, we used a stratified sampling methodology, following an economic criterion. The bal