The relationship between selected determinants of capital structure and cost of capital of publicly-listed firms in the property sector for the year 2008-2012

• Main Authors: Aurelia, Sarah Mae K., Bondoc, Maureen Felicia M., Bruzon, Dave Adrian V., Reyes, Claudine C.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10909
• Institution: De La Salle University

This thesis provides an evaluation of selected determinants of capital structure. The purpose of this study is to know the relationship of selected determinants of capital structure to the cost of capital of the 33 companies listed in the property sector of the Philippines Stock Exchange for the years 2008-2012. Using the stepwise regression model, the researchers concluded that firm size, earnings volatility, and profitability are significantly related to the capital structure. Specifically, the results showed that firm size and profitability are both positively related to capital structure while earnings volatility is negatively related to capital structure. Moreover, results showed that liquidity has a negative but insignificant relationship to capital structure. Lastly, the results also showed that the capital structure has a significant positive relationship with the cost of capital.