Financial crisis drives Dutch firms to seek external financing, changing capital structure.
The study looked at how the financial crisis affected Dutch companies' choices about how to finance themselves. They compared data from before and during the crisis. Companies borrowed more during the crisis when profits and cash were low. Before the crisis, companies with more profits, assets, size, and cash tended to borrow more. But companies with more growth opportunities borrowed less. During the crisis, these relationships mostly stayed the same, except for profits.