Determinants of capital structure for Philippine publicly-listed companies

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Document Type

Article

Source Title

Journal of Global Business

Volume

7

Publication Date

3-3-2018

Abstract

All entities have limited resources and management is expected to exercise prudence in its allocation to activities which would impact the overall standing of their respective organizations. However, proper allocation of resources is just one side of the coin and it can’t be done if businesses do not even have any resource to allocate at all.
The sources of an entity’s funds, both borrowed capital from creditors as well as the invested capital from and earned capital of shareholders, must also be considered in the decision-making process of the management.
The dataset used contained financial data of 179 Philippine publicly-listed firms (excluding banks and other financial institutions) for the periods 2012 to 2016. Panel data regression was used to arrive at the outcomes of this study.
This study determined that in the Philippines, size and growth are considered determinants of capital structure. Both variables have positive effects on the capital structure of firms.

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Disciplines

Accounting | Finance and Financial Management

Keywords

Corporations—Philippines—Finance; Capital

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