The effect of capital structure on profitability of financial institutions: Evidence from selected banks listed in the Philippine Stock Exchnage for the period of 2003-2012

Date of Publication

2013

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

Thesis Adviser

Joseph Vincent David

Defense Panel Member

Tyrone Chan Pao

Jyro Trivino

Neriza Casas

Abstract/Summary

This study investigated whether or not capital structure have an impact on profitability of financial institutions. A panel data of twelve banks listed in the Philippine Stock Exchange over a ten-year period from 2003 to 2012 was used in estimating the functions relating profitability (i.e. return on equity and return on assets) with capital structure (i.e.l short-term, long-term and total debt to total capital). The empirical results revealed that short-term and long-term debt to total capital has no significant impact on return on equity and return on assets, while total debt to total capital has a significant positive relationship with return on equity and a significant negative relationship with return on assets.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17174

Shelf Location

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

Physical Description

93 leaves : illustrations ; 28 cm.

Keywords

Banks and banking--Philippines

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