Determinants of top 100 Philippine publicly listed non-financial firms' financing decisions: An in depth study on the effects of ownership structure, nature, firm specific financial characteristics on top 100 Philippine publicly listed non-financial firms' financing decisions measured by capital structure

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business




Usaing a panel data set of the institutional and accounting data of the top 100 non-financial publicly listed Philippine firms over the period of 2000-2004, this paper examines the determinants of the financing decisions of Philippine companies. We first estimate panel-data models in capturing the effects of the financial variables, institutional as well as industry effects. Comparing the results with previous theories, studies and several interviews with publicly listed firm's CFOs, our results show that leverage ratio differ across industries such that manufacturing firms are expected to have higher debt levels than that of service firms and others. We also find that profitability and tangibility are negatively related to a firm's leverage ratio, while risk is positivity associated with firm's leverage ratio. Empirical result concurs with the passive voting hypothesis in which ownership concentration is negatively associated to firm's level range ratio. Through interviews, we verified these tests as well as gain insights on the fact the Philippine non-financial publicly listed firms' financing decision are also based on the risk preferences of firms as well as their tolerable level of debt. Lastly, we found empirically that several variables become significant after the Asian financial crisis during 1977 such that firm's assets become significant to corporate financing decision as well as the increase in awareness of loan sources for the CFO's in the interviews.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

145 leaves : ill. ; 28 cm.


Financial institutions--Philippines--Management; Finance--Philippines

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