An empirical investigation of the association between firm characteristics and the capital structure decision in high-technology companies

The primary purpose of this research is to assess the debt and equity financing of high technology companies and to assess whether a number of independent variables which previous literature has suggested as being important determinants of the level of debt usage in the firm's capital structure.; This research finds that firm size, cost variability, corporate tax shields, depreciation tax shields, research and development costs, and earning variability are statistically related to the level of debt financing of high technology companies. The positive signs associated with firm size, corporate tax, research and development costs, earning variability, and cost variability are consistent with the prediction of more debt by large firms, high cost and earning variability, high corporate tax, and high research and development costs companies.