A study on the effects of firm-specific variables on the financing decisions of selected Philippine publicly listed firms for the period 2002-2008

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Leila Calderon Kabigting

Defense Panel Member

Rene Hapitan

Edralin Lim

Abstract/Summary

This paper aimed to study variables which are deemed indicators of financing decisions by firms in the Philippines. The model was inclusive of independent variables which determined the financing requirements while the dependent variables were those sources of financing. Specifically, the variables undertaken in this study to show the magnitude and relative importance of debt and equity to financing decisions were: change in cash holdings, short-term debt issues, long-term debt issues, equity issues, treasury shares, investment in net working assets, investment in fixed assets and net income. The results exhibited evidences that profit shortfalls are often financed by firms using short-term debt. Moreover, firms belonging to the category of the top thirty high-growth, high leveraged and bottom 30 low-profit firms rely heavily on equity. Capital expenditures are financed mostly using debt. There was no clear evidence as to whether agency costs and information asymmetry cause firms to use equity as a resort. In fact, there had been some cases when firms use equity even in very high adverse selection situations.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21251

Shelf Location

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

Physical Description

117 leaves : illustrations

Keywords

Capital investments--Philippines; Business enterprises--Philippine--Finance; Corporations--Philippines--Finance

This document is currently not available here.

Share

COinS