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Article
The impact of product warranties on the capital structure of Australian firms
Australian Journal of Management
  • Bayan Arqawi, Bond University
  • William Bertin, Bond University
  • Laurie Prather, Bond University
Date of this Version
1-1-2013
Document Type
Journal Article
Publication Details

Citation only

Arqawi, B. Bertin, W.J., & Prather, L. (2013). The impact of product warranties on the capital structure of Australian firms. Australian Journal of Management.

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2013 HERDC submission. FoR code: 150201

© Copyright, The Authors, 2013

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Abstract

This paper examines the impact of Australian firms’ warranty policies on capital structure. The sample consists of 378 firms and 1727 firm-years for Australian public firms for the period 2006–2010. The results suggest that warranty policies impact on Australian firms’ capital structures. Firms offering product warranties to customers have less leverage than those firms that do not. Firms commit to honour warranty contracts, whether explicit or implicit, by selecting lower leverage levels.

Citation Information
Bayan Arqawi, William Bertin and Laurie Prather. "The impact of product warranties on the capital structure of Australian firms" Australian Journal of Management (2013) ISSN: 1327-2020
Available at: http://works.bepress.com/will_bertin/17/