{"product_id":"predicting-long-term-debt-in-the-healthcare-sector-von-jason-turner","title":"Predicting Long-Term Debt in the Healthcare Sector","description":"\u003cp\u003eTo understand the appropriate capital structure for healthcare firms, a two-stage approach to predict the use of long-term debt can provide valuable insight into the determinants of leverage.  Business risk (BR) in tandem with other determinants of capital structure does improve predictive power in a two-part econometric model. However, because of the frequency of not-for-profit(NFP) entities in the Healthcare Sector, an approximation of BR was developed and used in a sample of investor-owned and NFP firms. Within the IO sample, a combined model (BR and traditional determinants)that uses the BR approximation explains over 33% of the variance in long-term debt usage among healthcare providers and service firms.  The same BR proxy and model explains 7.2% of the variance among NFP hospitals. The substantially different results among the IO and NFP firms suggest that NFP firms are not adequately accounting for risk when determining their long-term debt usage, NFP healthcare facilities have a different response to risk relative to their IO counterparts, or the benefits of long-term debt financing that accrue to NFP firms are greater than the benefits that accrue to IO firms.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783639708707\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Autorenwelt Shop","offers":[{"title":"Softcover - 9783639708707","offer_id":39482484260957,"sku":"9783639708707","price":79.9,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/7359ad56-f3c2-414e-a04c-5201f01f3d2b.jpg?v=1775884721","url":"https:\/\/shop.autorenwelt.de\/products\/predicting-long-term-debt-in-the-healthcare-sector-von-jason-turner","provider":"Autorenwelt Shop","version":"1.0","type":"link"}