Abstract
The major perspective of this paper is to provide more evidence regarding how “quickly”, in different macroeconomic states, firms adjust their capital structure to their leverage targets. This study extends the empirical research on the topic of capital structure by focusing on a quantile regression model to investigate the behavior of firm-specific and macroeconomic factors across all quantiles of distribution of leverage (book leverage and market leverage). Therefore, depending on a partial adjustment model, we find that the adjustment speed fluctuated in different stages of book versus market leverage. Furthermore, while macroeconomic states change, we detect clear differentiations of the contribution and the effects of the firm-specific and the macroeconomic variables between market leverage and book leverage debt ratios. Consequently, we deduce that across different macroeconomic states the nature and maturity of borrowing influence the persistence and endurance of the relation between determinants and borrowing. 
Highlights
Plausible questions have been triggered in the scientific area of capital structure dynamic determination prompted by the recent global financial crisis, regarding how “quickly”, in different macroeconomic states, companies adjust their capital structure to their book leverage targets
This study extends the empirical research on the topic of capital structure by focusing on a quantile regression model to investigate the behavior of firm-specific and macroeconomic factors across all quantiles of distribution of leverage
Inspired by the importance of understanding capital structure, this paper uses quantile regression approximations to add to empirical information and focuses on how capital structure relations fluctuate between firms at different stages of the total debt, short-terms debt and long-terms debt distribution
Summary
Plausible questions have been triggered in the scientific area of capital structure dynamic determination prompted by the recent global financial crisis, regarding how “quickly”, in different macroeconomic states, companies adjust their capital structure to their book leverage targets. During the last twenty years, a series of research has emerged which focuses on investigating the particularities of small enterprises in their capital structure determination This issue is tackled in Torres and Julien (2005) research from a managerial perspective, where they describe the main findings of researchers over the last three decades, which have led to the recognition of SMEs specificities. Plausible questions have been triggered in the scientific area of capital structure determination by the recent global financial crisis http://ibr.ccsenet.org
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