Impact Of Global Financial Crisis On Finance Of US Home Builders’ Industry

The purpose of this paper is to examine the impact of the global financial crisis in the finance of U.S.homebuilders.using a panel data set from a sample of 29 U.S.homebuilders listed in New York Stock Exchange(NYSE) and National Association of Securities Dealers Automated Quotations(NASDAQ).The regression lines run and various hypotheses formulated provide the following results A,there was a mean difference in leverage of U.S.homebuilders before and after the crisis.B,firm size and growth opportunity are positively and significantly related with leverage.C,profitability is negatively and significantly related to leverage.D,fixed effect is more appropriate that random based on Housman tests.These are based on book and market leverage formulas.robustness tests also provide similar results.So,the paper concluded that the 2008 financial crisis,given the economic stimulus of the U.S.government and the Fed increased the leverage of U.S.homebuilders..