The relationship between the capital structure and profitability of Philippine manufacturing companies under the food and beverages sub-sector

Date of Publication

2013

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Edralin C. Lim

Defense Panel Member

Junette A. Perez
Isagani Lati, Jr.
Jyro Trivino

Abstract/Summary

One of the vital decisions a financial manager must take is the capital structure decision because the decision regarding when, where, and how funds were acquired was critical as maximizing shareholders return should be performed while taking minimum risk (Management Study Guide, n. d.). In this study, the relationship between the capital structure and the profitability of twelve (12) listed Philippine manufacturing firms operating under the food and beverage sub-sector in the Philippine Stock Exchange (PSE) were determined and analyzed for the years 2001 to 2012 (12 years). The results showed that the models GPR, NPR, OPR, ROI, and EPS were significant. Among these, DA, CG and IC had a positive and significant relationship with GPR, DE and IC with NPR, and DE and DA with OPR. On the other hand, DE had a positive and significant relationship with ROI. DA and IC were significant in EPS and the dependent variable more likely increased as long as the companies were company6 and company10. Ultimately, capital structure had a generally positive relationship on profitability on the sample tested.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21211

Shelf Location

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

Physical Description

ii, 93 leaves

Keywords

Corporations--Philippines; Food industry and trade--Philippines; Beverage industry--Philippines

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