Impact of capital structure on the financial performance of selected publicly-listed real estate firms in the Philippines
Date of Publication
2012
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Accountancy
Subject Categories
Accounting
College
Ramon V. Del Rosario College of Business
Department/Unit
Accountancy
Thesis Adviser
Arnel Onesimo Uy
Defense Panel Member
Ma. Victoria Baarde
Nimpha M. Aquino
Abstract/Summary
This study examines the impact of capital structure on financial performance of selected real estate firms using a sample of 10 publicly-listed firms in the Philippine Stock Exchange during the five year period, 2007-2011. Pooled data for the selected firms were generated and analyzed using the ordinary least-squares (OLS) regression as a method of estimation.
Six independent variables (leverage, tangibility, size, risk, growth and tax), used as determinants of capital structure, were initially tested for their predicting ability on the financial performance models but only leverage, risk and size were found to have a significant impact. Thus, the other insignificant independent variables were dropped as part of the determinants of capital structure.
The result shows that a firm's capital structure as determined by using leverage and risk for the Return on Equity (ROE) Model while using leverage and size for the Return on Assets (ROA) Model has a significant impact on the firm's financial measures. Specifically, leverage has a significant negative impact on the performance measure on both of the models while risk and size have significant positive impact using the ROE and ROA model, respectively.
The study of these findings indicates support with prior empirical studies specifically, the Dynamic Trade off theory but opposes with Agency theory and Capital Structure Irrelevance Theory.
Abstract Format
html
Language
English
Format
Accession Number
TU18017
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
104 leaves : illustrations (some colored) ; 28 cm.
Keywords
Real estate business--Philippines; Real estate management--Philippines
Recommended Citation
Angulo, J. R., Beltran, E. A., Cadauan, M. E., & Escriba, J. R. (2012). Impact of capital structure on the financial performance of selected publicly-listed real estate firms in the Philippines. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/10806
Embargo Period
2-3-2022
