The Determinants of Capital Structure Choice in the US Restaurant Industry

This paper presents an empirical analysis of an important element of capital structure of the restaurant industry which is represented by SIC code 58, eating and drinking places. The study focuses on explaining important characteristics affecting the capital structure of US restaurant firms. This is a cross-sectional analysis which assesses the role of size, earning volatility, profitability, growth opportunities, asset structure, non-debt tax shields, franchising, and leasing expense on various leverage ratios.