Literature Review of Zero-Leverage Firms: A Text-Mining Approach

Authors

• Md. Abul Kalam Azad, Department of Business and Technology Management, Islamic University of Technology, Board Bazar, Gazipur, 1704 – BANGLADESHFollow
• Paolo Saona, Saint Louis University – Madrid Campus, Richard A. Chaifetz School of Business, Avda. del Valle, 34 28003 Madrid – SPAIN, Universidad Católica de la Santísima Concepción, Department of Business and Economics, Alonso de Ribera 2850, Concepción – CHILE; AND Universidad Pontificia Comillas, Alberto Aguilera, 23 28015, Madrid – SPAINFollow
• Laura Muro, Saint Louis University – Madrid Campus, Richard A. Chaifetz School of Business, Avda. del Valle, 34 28003 Madrid – SPAIN
• Mehedi Hasan Ifti, Department of Business and Technology Management, Islamic University of Technology, Board Bazar, Gazipur, 1704 – BANGLADESHFollow
• Chowdhury Noushin Novera, Department of Business and Technology Management, Islamic University of Technology, Board Bazar, Gazipur, 1704 – BANGLADESHFollow

Abstract

Purpose: While zero-leverage firms have been studied individually, comprehensive literature reviews exploring their research streams and future directions remain scarce. This study addresses this gap by conducting the first review of the zero-leverage puzzle utilizing a hybrid bibliometric and text-mining approach. This methodological framework systematically categorizes established research streams and identifies future research directions on this topic.
Methodology: The study employs a hybrid approach, combining bibliometric analysis with text mining to efficiently analyze unstructured textual data. A full-text analysis of 56 publications from the Web of Science (WoS) database is conducted using R programming and VOSviewer software. Additionally, the data are examined through longitudinal analysis, tree-maps, and trend themes to capture the evolution of the academic landscape.
Results: The text-mining analysis, employing Latent Dirichlet Allocation (LDA), revealed eight thematic models that categorize the key research areas within zero-leverage literature. Each theme corresponds to distinct findings supported by posterior probabilities, offering a structured perspective on the existing literature and identifying key authors and publications contributing to the field.
Implications: Zero-leverage firms exhibit a variety of strategic motivations that current capital structure theories only partially explain. This study highlights the need for expanded theoretical frameworks to account for the diverse financial behaviors of zero-leverage firms and provides a structured roadmap for future research to bridge the gaps left by traditional models.

First Page

68

Last Page

87

Recommended Citation

Azad, Md. Abul Kalam; Saona, Paolo; Muro, Laura; Ifti, Mehedi Hasan; and Novera, Chowdhury Noushin (2026) "Literature Review of Zero-Leverage Firms: A Text-Mining Approach," Journal of King Abdulaziz University: Economics and Administration: Vol. 40: Iss. 1, Article 6.
DOI: https://doi.org/10.64064/1658-4236.1019

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This work is licensed under a Creative Commons Attribution 4.0 International License.