A comparative analysis of capital structure and its determinants using selected multinational and local firms in the manufacturing industry for the period 2001-2005

Date of Publication

2007

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Defense Panel Chair

Carlo Asuncion

Defense Panel Member

Edralin Lim
Joel Bangalan

Abstract/Summary

Capital structure is the mixture of debt and equity utilized by a firm to finance its operations. Studies have shown that there are factors which influence the capital structure of firms. These factors are more popularly known as determinants and consequently include tangibility, growth, firm size, profitability, volatility, tax, non-debt tax shields, ownership structure and managerial shareholdings, networking, and relationship with banks. In this study, the proponents solely focused on the leverage portion of capital structure and made use of the first five determinants mentioned. Samples were taken from the manufacturing industry, which has consistently performed well, over the years. The companies selected were then classified into two main categories namely, local and multinational firms. Afterwards, the relationship between leverage and the determinants utilized were identified through the use of multivariate linear regression. Aside from this, a companrison between the overall preference of domestic and multinational firms for both long-term and short-term debt was performed. Lastly, the proponents were able to ascertain, which of the five determinants had a significant relationship to leverage.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU14172

Shelf Location

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

Physical Description

41, [34] leaves, illustrations, 28 cm.

Keywords

Capital; Corporations--Finance; Business enterprises--Finance

Embargo Period

3-18-2021

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