... choice of capital structure (see Harris and Raviv,1991; and Rajan and Zingales, 1995). Firm size (SIZE) is measured by the logarithm ofthe firm s sales (see Titman and Wessels, 1988; Rajan and Zingales, ... Risk and Productive Efficiency in Manufactur-ing Firms’, Journal of Banking and Finance, Vol. 27, pp. 2099–120.Berger, A. N. and E. Bonaccorsi di Patti (2006), Capital Structure and Firm Performance: ... the choice of capital structure. As Berger and Bonaccorsi di Patti (2006) pointed out, regressions of firm performance onleverage may confound the effects of capital structure on performance with...