A Structural Model of Human Capital and Leverage - Duke ...
A Structural Model of Human Capital and Leverage - Duke ...
A Structural Model of Human Capital and Leverage - Duke ...
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Table 2: Book <strong>Leverage</strong> <strong>and</strong> Labor Intensity. The table shows the results from regressing book leverage<br />
on labor intensity as well as a number <strong>of</strong> previously recognized predictors <strong>of</strong> capital structure. The data is<br />
from Compustat with financial firms dropped. Labor intensity is measured as total labor expense divided<br />
by total assets. Each independent variable is measured in deciles to help control for nonlinearities <strong>and</strong> to<br />
facilitate comparison <strong>of</strong> coefficients.<br />
(1) (2) (3) (4) (5) (6) (7)<br />
VARIABLES Book Lev. Book Lev. Book Lev. Book Lev. Book Lev. Book Lev. Book Lev.<br />
Labor Intensity -0.027*** -0.010***<br />
(0.001) (0.002)<br />
Tangibility 0.029*** 0.020***<br />
(0.001) (0.002)<br />
Size 0.011*** 0.002<br />
(0.002) (0.001)<br />
Market/Book -0.018*** -0.004***<br />
(0.001) (0.001)<br />
Pr<strong>of</strong>itability -0.022*** -0.012***<br />
(0.001) (0.001)<br />
Cash Flow Vol. -0.018*** -0.000<br />
(0.001) (0.001)<br />
Constant 0.414*** 0.105*** 0.206*** 0.364*** 0.390*** 0.364*** 0.294***<br />
(0.009) (0.008) (0.010) (0.009) (0.010) (0.009) (0.020)<br />
Observations 13422 13422 13422 13422 13422 13422 13422<br />
Adj. R 2 0.247 0.287 0.0673 0.109 0.183 0.124 0.391<br />
*** p
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