Investigating the determinants of capital structure: Evidence from the Philippine property industry

Date of Publication

2011

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

Neriza M. Delfino

Defense Panel Chair

Alfredo M. Santoyo

Defense Panel Member

Kashmirr Ibañez
Dan Roces

Abstract/Summary

There are three major theories of capital structure under this study-- static trade-off theory, pecking order theory and agency cost framework. This study regress six common determinants of capital structure plus a diversification measure, seven factors in all, on leverage in order to determine which particular theory the property industry falls into. Empirical results show that the property industry of the Philippines falls under the static trade-off theory. This study also incorporates a diversification measure called caves index. Both of these extensions have not been extensively highlighted in other researchers and are considered as departures from the existing literature. Results show that all but earnings volatility were significant. Data utilized are from selected publicly listed property firms. Data is mainly sourced from the Osiris database dated 2005 to 2009 and the selected individual firm's annual report.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17183

Shelf Location

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

Physical Description

105 leaves : illustrations (some color)

Keywords

Finance; Debt; Diversification in industry

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