Despite its prominent role in firms' external financing, debt is highly underrepresented in the academic literature, compared to equity financing (Cumming, 2016). This thesis investigates corporate debt under diverse bankruptcy regulation in Europe (Chapter 1), as well as benefits arising from debt renegotiation among US firms (Chapter 2 and 3). The first study examines whether corporate borrowing responds to the strength of creditor rights, which differ greatly across countries. We use a difference-in-differences (DiD) methodology around an EU-wide bankruptcy reform in 2002 as an exogenous shock that reshaped the institutional environment for corporate debtors and their creditors in Europe. Our findings suggest that subsidiaries in the EU decrease their leverage when they are exposed to less creditor-friendly regimes after 2002, while there is hardly any impact on leverage when shifting to an equally creditor-friendly regime, and even less so when shifting to a more creditor-friendly one. We conclude that the legal environment under which credit is granted matters for firms' access to finance. The following two studies take a closer look into the bank-firm relationship during which renegotiations of existing loans are frequently observed. While the area of private debt renegotiation (among healthy firms) is not very well researched so far, this is the first study to link between loan renegotiation and firms' credit rating (Chapter 2) and firms' adjustments toward capital structure targets (Chapter 3). Firms' credit rating is important as it determines the rate firms have to pay for private debt and it governs capital requirements of lenders (Basel II and III). The study shows a positive impact on a firm's credit ratings whenever there was a loan amendment in the month prior to the rating update. Amending loans after the initial loan contract therefore carries signalling power to the capital market (in line with existing literature) and implies benefits to both borrowers and lenders. The third study finds an additional beneficial effect of loan amendments for firms. We investigate whether loan amendments might serve as a channel available to firms to speed up their adjustments toward capital structure targets. Against a broad range of alternative leverage target definitions used in the capital structure literature recently, loan amendments tend to accelerate firms' speed of adjustments by up to 10.6 percent points within twelve months after the loan has been amended (in addition to firms' general speed of adjustment). Therefore, our studies provide evidence for additional, novel benefits of corporate debt renegotiation which encourages firms to update and optimise financial contract design even after origination.

本研究旨在探討公司系統性風險與會計變數之關聯性。影響公司系統性風險之因素應包括公司內部因素與公司外部總體經濟因素，但過去文獻並未完全涵蓋到，致使其模式解釋力皆不高。為彌補過去文獻之不足，本研究先以理論推導方式將公司內部與外部因素納入系統性風險模式中，再以實證資料驗證之。 　　模型推導結果顯示，影響系統性風險之因素包括公司盈餘、營運槓桿度、財務槓桿度、帳面價值、股利、市場組合報酬率、無風險報酬率，以及其他總體經濟因素等。理論推導結果產生三大主要命題： 　　1. 在公司前期盈餘為正及當期銷貨成長率為正，以及公司當期之每股盈餘、每股帳面價值及每股現金股利對股價具有正向影響時，公司當期總槓桿程度（營運槓桿度與財務槓桿度之乘積）對系統性風險具有正向影響。 　　2. 在公司前期盈餘為正，以及公司當期之每股盈餘、每股帳面價值及每股現金股利對股價具有正向影響時，公司當期每股現金股利對系統性風險具有正向影響。 　　3. 當公司當期銷貨成長率為正時，營運槓桿度與財務槓桿度為正向相關；但當公司當期銷貨成長率為負時，營運槓桿度與財務槓桿度具有抵換關係。 　　根據上述命題，本研究設立三項假說。第一，公司總槓桿程度對系統性風險具有正向影響，而營運槓桿度與財務槓桿度對系統性風險之影響皆為正向（或負向）。第二，公司發放現金股利對系統性風險具有正向影響。第三，在系統性風險與盈餘皆不變的額外前提下，當銷貨成長率為負時，營運槓桿度與財務槓桿度具有抵換關係;當銷貨成長率為正時，營運槓桿度與財務槓桿度為正相關。 　　實證結果部分支持上述三項假說。首先，公司總槓桿程度、財務槓桿度及現金股利皆對系統性風險具有顯著正向影響。因此，公司可利用降低總槓桿程度、財務槓桿度及減少現金股利之策略來減低系統性風險。其次，市場組合報酬、通貨膨脹率及國民生產毛額成長率等總體經濟因素，對系統性風險皆具有負向顯著影響。此結果說明導致公司系統性風險上升之因素應該包括公司內部與外部因素。因此，公司欲降低風險時，除了利用總槓桿程度、財務槓桿度與股利政策外，尚須考慮其他總體經濟變化。最後，實證結果亦顯示，當公司正處於銷貨成長時期，以追求成長為目標，可能同時面臨高營運風險與高財務風險。然而，在銷貨衰退時，公司卻不必然會以風險控管為目標。因此，營運槓桿度與財務槓桿度並不存在抵換關係。 / This thesis examines the relationship between firm systematic risk and accounting variables. Potential determinants of firm systematic risk theoretically include accounting and macroeconomic variables, but prior research only explored part of them and most models yielded low explanatory power. This research analytically derives and empirically verifies a model of firm systematic risk. 　　The analytical results suggest that determinants of systematic risk at least include earnings, the degree of operating leverage, the degree of financial leverage, book value, dividend, market-portfolio return, risk-free return and other macroeconomic variables. Three main propositions are therefore derived as follows. 　　1. When a firm's prior year earnings and current year sales growth are both positive, if its current book value, cash dividend, and earnings all have a positive effect on its stock price, then its degree of total leverage, defined as the product of degree of operating leverage and degree of financial leverage, has a positive effect on its systematic risk. 　　2. When a firm's prior year earnings is positive, if its current book value, cash dividend, and earnings all have a positive effect on its stock price, then its current cash dividend has a positive effect on its systematic risk. 　　3. When a firm's current year sales growth is positive (negative), its degree of operating leverage is positively (negatively) related with its degree of financial leverage. 　　Three hypotheses are then tested empirically. First, a firm's degree of total leverage has a positive effect on its systematic risk; and its degree of operating leverage and degree of financial leverage both have a positive (or both negative) effect on its systematic risk. Second, a firm's cash dividend has a positive effect on its systematic risk. Third, if a firm's sales growth is positive (negative) without any change in its systematic risk or earnings, then its degree of operating leverage is positively (negatively) related with its degree of financial leverage. 　　The empirical results provide partial support for the above hypotheses. First, the degree of total leverage, degree of financial leverage, and cash dividend each has a positive effect on the systematic risk. Therefore, a firm can reduce its systematic risk by lowering its degree of total leverage, degree of financial leverage and the cash dividend. Second, macroeconomic factors such as the market-portfolio return, inflation and GNP growth have a negative effect on the systematic risk. Hence, a firm attempting to control its systematic risk should consider the changes of macroeconomics besides the leverage and dividend policy. Finally, a firm with growing sales takes a high degree of operating leverage and financial leverage, but a firm does not necessarily take a high (low) degree of operating leverage and a low (high) degree of financial leverage as target when its sales are declining. In other words, these two leverages have no offset relationship.

This project studies how bureaucratic behavior influences policy implementation. It presents a novel bureaucratic access points and leverage theory, which help us understand how policies are successfully implemented in the midst of bureaucratic challenges resulting from organizational roles and responsibilities and contrasting assessments. The concept of access points has traditionally involved lobbyists and interest groups accessing elected officials and their staffs. I ask what is the effect of bureaucrats accessing bureaucrats directly in the policy implementation process and its subsequent evaluation. I argue that bureaucrats leverage other bureaucrats during policy implementation proceedings, which adds the notion of power to access points theory. The focus of this investigation is the relationship between humanitarian assistance and disaster relief (HA/DR) agencies and associated Department of Defense (DOD) components, particularly DOD medical components providing wellness intervention. Bureaucratic access and leverage enables a more unified implementation of over-arching HA/DR policy by disparate agencies with unique missions, resources, capabilities, and assessment measures. The existing literature does not fully capture how such agency differences are mitigated and overcome in implementing policy that spans multiple entities. Bureaucratic access points and leverage theory offers bureaucrats the analytical capability to know who is controlling policy implementation. It also presents a tool they can use to maintain and increase their own influence and power within a policy domain. / text

Purpose: The thesis purpose is to, with regards to relevant theories, explain how the variables industry affiliation, growth, uniqueness and tangiability affect modern, swedish firms capital structure. Method: A quantitative method along with a deductive approach has been used to make this study. Multiple regression analysis has been applied in order to identify statistical relationships between various variables. Conclusion: The empirical results can only to a certain degree confirm what the theories are claiming. The statistical relationship the growth, profitability, uniqueness in a firm has with leverage is negative. Moreover, tangibility turned out to have a positive relationship to leverage, which coincides with said theories. / Syfte: Uppsatsens syfte är att utifrån relevanta teorier förklara hur variablerna lönsamhet, branschtillhörighet, tillväxt, unikhet och tillgångsstruktur påverkar svenska bolags kapitalstruktur. Metod: En kvantitativ metod med deduktiv ansats har använts för att möjliggöra denna studie. Multipel regressionsanalys har tillämpats för att statistiskt kunna identifiera samband mellan olika variabler. Slutsats: Resultatet stämmer nästan genomgående med teoriernas antaganden. Sambandet mellan tillväxt, lönsamhet, unikhet mot skuldsättningen är negativt. Det visade sig dessutom att det finns ett positivt samband mellan tillgångsstruktur och skuldsättningsgrad, vilket stämmer med vad teorierna hävdar.

Wang, Zhuojun. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2009. / Includes bibliographical references (leaves 46-47). / Abstract also in Chinese.

A valid and accurate capital asset pricing model (CAPM) may help investors and mutual funds managers in determining expected returns and thus, may increase profits which can be reflected on the community resources. The problem is that the traditional CAPM does not accurately predict the expected rate of return. A more accurate model is needed to help investors in determining the intrinsic price of the financial asset they want to sell or buy. The purpose of this study was to examine the validity of the single-factor CAPM and then develop and test the validity of a multifactor CAPM in the Jordanian stock market. The study was informed by the modern portfolio theory and specifically by the single-factor CAPM developed by Sharpe, Lintner, and Mossin. The research questions for the study examined the factors that may explain the variation in the expected rate of return on stocks in the Jordanian stock market and the relationship between the expected rate of return and factors of market return, company size, financial leverage, and operating leverage. A causal-comparative quantitative research design was employed to achieve the purpose of the study by testing the listed companies on the Amman stock exchange (ASE) for the period from 2000 to 2015. Data were collected from the ASE database and analyzed using the multiple regression model and t test. The results revealed that market return, company size, and financial leverage are not predictors of the expected rate of return while operating leverage is a predictor. The results of this study may contribute to positive social change by changing the way the individual investors and mutual funds managers select their investing portfolios which can lead to better resource distribution in the economy.

Multiple strategic discontinuities of the constantly changing business environment are driving organizations, both large and small to seek new ways of conducting business to create wealth. The only way organizations can cope with these strategic discontinuities, in their pursuit of strategic self-renewal, is to develop and maintain strategic flexibility whereby new sources of wealth can be created through new combinations of resources. It is through such a strategic flexibility that any organization can endeavor to achieve a dynamic fit between the organization and its environment. Dynamic capabilities and their proxies are the means by which organizations can explore and exploit various resource configurations across different possible functional, cross-functional and cross-unit activities and thereby nurture their strategic flexibility in achieving this objective of strategic self-renewal, on a sustained basis. A critical literature review pertaining to resources, dynamic capabilities, competences and strategic renewal has pointed to a dearth of holistic quantitative studies of strategic renewal from a dynamic contingency perspective or a coevolutionary perspective, particularly in the Indian context. There has not been adequate literature in striking a blend of dynamic capabilities and their proxies in terms of a judicious mix of inside-out and outside-in approaches to strategy. The empirical and conceptual gaps in literature have provided us the impetus to take upon this study. On the conceptual front, there has not been any theoretical model of integrated resource leverage that links dynamic capabilities and their proxies, in the context of strategic renewal of organizations. On the empirical front, studies on dynamic capabilities till date have been predominantly qualitative anecdotal or episodic in nature and hence firm-specific or industry-specific in their outlook. It is imperative to synthesize the conceptual debates and the diverse empirical findings towards a more integrated understanding of resources and dynamic capabilities in the context of strategic self-renewal of organizations. The present study attempts to bridge these research gaps, first by developing a conceptual model and then testing it for subsequent statistical validation. It endeavors to understand the dynamics between different resource leverages and strategic renewal initiatives and their impact on organizational performance, on the dual fronts of market performance and financial performance. It also proposes a definitional framework encompassing the hierarchy of concepts viz., resources, dynamic capabilities and dynamic competences, whose definitions from the extant literature were duly synthesized for a greater and cohesive understanding of these concepts. The objectives of the current study were: •To compare and contrast the extent of implementation of various resource leverage practices and strategic renewal initiatives in different organizations of varying age, size and ownership. •To study the dynamic interactions between various resource leverages and strategic renewal initiatives and their impact on organizational performance. •To make appropriate suggestions for enhanced leverage of resources for augmented prospects of strategic renewal of organizations. A conceptual model was developed based on support from literature and a preliminary study. The model comprises several path links (hypotheses), each of which connects two variables (constructs with pertinent indicators) and their directionality. Besides establishing rationale for each of the hypotheses, the constructs were operationalized based on an existing survey instrument (Volberda, 1998) and other allied literature. All in all, a set of 38 hypotheses was identified and formulated for the current study and has been tested using Variance-Based Structural Equation Modeling (VBSEM). The conceptual model links three major aspects viz., strategic renewal initiatives, resource leverages and organizational performance. The resource leverages are the result of constant application and development of dynamic capabilities of an organization while the strategic renewal initiatives, by and large act as proxies of these dynamic capabilities. On one hand, the model focuses on different strategic renewal initiatives that tend to jack up the absorptive capacity of an organization from time to time, with critical inputs of information from the multiple perspectives of customers, employees, competitors and business environment in general. On the other hand, it encompasses multitudinous resource leverage practices that explore and exploit different resource configurations across various possible functional, cross-functional and cross-unit activities by virtue of dynamic capabilities. Thus, a blend of inside-out and outside-in approaches to strategy is captured in this model. Based on a critical literature review and a preliminary study entailing in-depth interviews with strategy experts and a pilot study, two complementary questionnaires were developed. The first questionnaire encompasses various resource leverage practices in terms of a firm’s dynamic capabilities, and it also includes measures of organizational performance while the second questionnaire entails strategic renewal initiatives in terms of proxies of dynamic capabilities. The first questionnaire was personally administered to the CEO while the second one to a senior level manager in each organization and their responses were garnered. The sample covered 80 multi-unit organizations (80 matched pairs of respondent executives). The first phase of data analysis comprised of computation of means and standard deviations and statistical tests of comparison for each item. Kruskal-Wallis test was used for each item, across different groups of organizations, based on age-wise, size-wise and ownership-wise modes of classification. Based on the results, i.e., wherever the results rejected the null hypothesis of the foregoing Kruskal-Wallis test, subsequently, multiple testing procedure entailing pair-wise t-tests (with Bonferroni p-value adjustment method) was adopted to further explore differences, if any, between different pairs of groups. Based on the statistical significance of these tests, conclusions were drawn as to whether nature of ownership, age and size of organizations can explain the variations in resource leverage practices, strategic renewal initiatives and firm performance across organizations. Next, the survey data were analyzed at an aggregate level to test the hypothesized conceptual model by means of a multivariate technique viz., Variance-Based Structural Equation Modeling (VBSEM). Our rationale for choosing VBSEM stems from various soft prerequisites of VBSEM such as minimal sample requirements, scope for flexible interplay of data and theory, least distributional assumptions (nonparametric approach), model complexity, theory-building and scope for accommodating both latent and emergent constructs in the model. In accordance with the recommendations of Falk and Miller (1992), model trimming was carried out based on widely accepted threshold values for loadings (for reflective indicators), path coefficients and Rvalues for endogenous constructs. In addition to this, formative indicators (at the outer model level) and exogenous constructs (independent LVs at the inner model level) were handled by duly checking for multicollinearity, using a holistic approach similar to forward stepwise regression proposed by A.Koutsoyuannis (1977) and which is a revised version of the Frisch’s Confluence Analysis. After obtaining PLS estimates for all the parameters, bootstrapping for 1000 resamples was carried out to obtain stable estimates for all these parameters of PLS. Thus, bootstrap estimates were found for all the parameters of PLS viz., weights for the formative indicators and loadings for the reflective indicators in the measurement model; and path coefficients in the structural model. Pertinent F-tests were used both for Rvalues and their respective effect sizes (f values) to test their statistical significance. Direct and indirect effects of exogenous variables on the endogenous variables in the structural model were computed. Besides these, Tenenhaus’ goodness-of-fit index for the overall model was computed and this was found to be adequate, given the complexity of the model. Concomitant to the foregoing quantitative analyses, three detailed case studies in manufacturing, service and process industries, one in each of these industries, were undertaken for the purpose of triangulation. All the three case studies were carried out and analyzed on a common theme viz., dynamic interactions between different resource leverages and strategic renewal initiatives and their impact on organizational performance. These case studies also represent three categories of ownership (one listed organization, one closely held organization and one Indian multinational) and three different age groups, and thereby provide sufficient contrast in contexts. Major conclusions of the study pointed to unexplored or under-explored or under-exploited resource leverage practices and strategic renewal initiatives in the Indian context. Some of the major ones include leverage of strategic alliances, leverage of IT, leverage of Product-Market Combinations (PMCs), modularity orientation in product design, inter-industry benchmarks, resource accumulation and resource conservation strategies in general. Based on these conclusions, appropriate suggestions were made. Major suggestions to organizations include exploration of new business opportunities via strategic alliances, exploration of white space opportunities via technological boundary-spanning activities, exploration of alternative business models in different product markets, augmentation of IT integration with business processes, enhancement of collective learning via cross-functional and cross-unit activities via practices such as job rotation and proper management of knowledge portals and increased encouragement to employees (particularly technological gatekeepers and entrepreneurial boundary-spanners) in all brainstorming sessions for generation of New Product Development (NPD) ideas. Major empirical contributions of this study include establishment of significance of different strategic variables in the Indian context, assessment of the dynamic interactions between various resource leverages and strategic renewal initiatives and their impact on organizational performance on the dual fronts of market performance and financial performance. Major conceptual contributions of this study comprise refinement, integration and operationalization of theoretical concepts drawn from the diverse yet complementary sources of literature such as resources, dynamic capabilities, competences and strategic renewal from a dynamic contingency perspective or a co-evolutionary perspective concomitant to development of a comprehensive model of integrated resource leverage via dynamic capabilities and their proxies for strategic self-renewal of multi-unit organizations Directions to future researchers include longitudinal studies for greater insights of causality in the model with feedback effects, empirical studies with multiple respondents per organization, inclusion of objective measures of performance or / and industry-specific studies with a larger sample size for gaining an enhanced understanding of resource leverage practices for strategic organizational renewal.

The main objective of the thesis was to investigate the factors that determine capital structures of financial firms using two separate samples of banks and insurance companies. In the first instance, the results of the study showed that the financing behaviour of banks mirrors that of non-financial firms. It was also observed bank financing behaviour can be best explained by the pecking order theory. Risk and size variables were observed to be negatively related to the Tier 1 regulatory capital ratio, whereas the dividend variable was positively related. Similarly, risk and size were found to be negatively associated with buffer capital, while dividends were positively related. The 2007–2009 global financial crisis (GFC) was found to have negatively affected the financial structures of banks. Consistent with similar studies, it was observed that banks have a target capital structure, and adjust to this target at an adjustment speed of 44%. With regard to insurance companies, it was observed that the firm-level determinants of capital structure explain insurer leveraging. Unlike banks, the 2007–2009 GFC positively affected the capital structure of insurance companies. Similar to banks, results showed that insurers have target capital structures which they seek to achieve in their financing and adjust to such targets at a rate of 21%, which is lower than that of banks. The study contributes to the body of knowledge in four major ways. Firstly, it adds to the literature on the capital structure of financial firms, which area has not been extensively and conclusively studied. Using a different environment, it validates the ‘standard corporate finance view’ as has been observed in the few studies on financial firms. Secondly, it validates the ‘buffer view’ and ‘regulatory view’ of capital structures of financial firms that have taken prominence since the last GFC. Thirdly, the study recognises that banks and insurance companies are fundamentally different with regard to capital structure and regulation and therefore warranted separate treatment in studies. This is in contrast with recent studies that do not recognise the heterogeneity of the two types of firms. Fourthly, to the researcher’s knowledge this study is the first to examine the impact of business cycles/financial crises on the financing patterns of financial firms. Confirming the fundamental differences between banks and insurance companies, the study observed that financial crises have a negative impact on capital structures of banks (meaning that they deleverage during crises). In contrast, financial crises have a positive impact on capital structures of insurance companies (meaning, unlike banks, they leverage during crises). / Business Management / D. Phil. (Management Studies)

Les universités françaises ont fait l’objet d’un ensemble de réformes qui, dans l’esprit, visent à moderniser leur gestion et leur mode de gouvernance. Ces réformes se sont traduites par la mise en place d’un ensemble de mesures notamment l’adoption de la Loi Relative aux Universités (LRU) en 2007 qui permet auxdites universités d’accéder aux Responsabilités et Compétences Elargies (RCE). Ce passage s’est accompagné de l’obligation de certification des comptes des universités par un auditeur légal dont la mission d’audit vient s’ajouter à un ensemble complexe de mécanismes de gouvernance des universités déjà en place. En conséquence, le problème qui se pose est la question de l’utilité et de l’apport potentiel d’un contrôle externe supplémentaire au sein des universités.Cette thèse a pour objectif d’examiner les facteurs d’efficience et de légitimité de la de la transformation du système de gouvernance des universités par l’introduction de l’audit légal à travers deux objectifs : d’une part, explorer les perceptions qu’ont les membres des équipes dirigeantes du rôle de l’audit légal dans la gouvernance et son impact sur la latitude managériale des présidents des universités et d’autre part, mettre en évidence l’apport potentiel de l’audit légal au système de gouvernance en place.Pour répondre à ses objectifs, nous avons opté méthodologiquement pour une approche mixte combinant les études qualitative (46 entretiens) et quantitative (113 questionnaires exploitables) réalisées auprès des équipes dirigeantes des universités. Les résultats révèlent que l’audit légal, en tant que mécanisme de gouvernance, contribue en dynamique à réduire et à renforcer la latitude managériale des dirigeants des universités, et sa dimension cognitive semble être dominante aux yeux des équipes dirigeantes des universités. Cette étude met également en évidence certaines insuffisances du système de gouvernance des universités et montre le rôle de complémentarité joué par l’audit légal. En ce sens, cette recherche contribue à une approche intégrée de la gouvernance, en examinant la complémentarité des dimensions disciplinaire et cognitive de l’audit légal au sein d’un système de gouvernance.Cette thèse montre par conséquent la contribution de l’audit légal à l’amélioration de l’efficacité du système de gouvernance des universités. / The French Universities were submitted to a pool of reforms and measures that were aiming to modernize their management and governance process. These reforms are translated by the implementation of a set of measures, especially by the adoption of the « Loi Relative aux Universités LRU » in 2007 which allows Universities to have access to the « Expanded Responsibilities and Competencies » (Responsabilités et Compétences Elargies RCE). This transition to RCE states that it’s an obligation to certificate the accounts of the University by an external auditor, whose audit mission is in addition to the existing complex governance system. Consequently, the main question is the utility and the potential contribution of a supplementary external control within the Universities.The purpose of this research is to assess the efficiency and the legitimacy factors of the transformation process in the University’s governance system by introducing the legal audit through two main objectives: firstly, exploring the management team’s perceptions of the role that the legal audit has in the governance process and its impact on the president’s managerial latitude; and secondly, highlighting the potential contribution of the legal audit to the current governance system.In order to meet the objective of the research, we have chosen a mixed methods approach by combining a qualitative (46 interviews) with a quantitative study (113 questionnaires), realized with the help of the University’s management teams. The results reveal that legal audit, as a governance mechanism, is contributing simultaneously at diminishing and reinforcing the managerial latitude of a President in an University and that the cognitive dimension appears to be prevailing in the eyes of the University’s management teams. This study highlights also certain weaknesses of the governance system in the universities and underlines the complementarity role of the legal audit. Therefore, this thesis contributes to an integrated approach of the governance by examining the complementarity between the disciplinary and the cognitive dimensions of the legal audit.In conclusion, this research illustrates the contribution of the legal audit for improving the efficiency of the governance system in the French Universities.

This thesis explores if Scandinavian publicly listed firms’ financial leverage was affected by the Covid-19 pandemic. Whilst theory suggests that financial leverage is positively affected by uncertainty and reduced profitability, previous empirical research finds weak evidence of listed firms reducing financial leverage during crises. We follow the work by Demirgüç-Kunt, Martinez Peria and Tressel (2020) and D’Amato (2020) and run fixed effect panel data regression analyses. Our results are in line with the previous empirical studies regarding the financial crisis as we do not find significant change in means in financial leverage between the pre-pandemic period and the pandemic for listed firms. For our complete sample, we find that the pandemic had no significant impact on total debt to total assets but a significant impact on long-term debt to total assets. However, the results are varying amongst the countries. Therefore, further research is advised. We also find that, increases in growth opportunities, and profitability affect financial leverage negatively, whilst asset structure and firm size have positive effects on financial leverage. The results for liquidity are mixed. Overall, the findings are in line with previous research.