A study on the determinants of capital structure that affect profitability of the selected publicly listed companies in the property sector in the Philippines for the period 1996-2004

• Main Authors: Co, Nikki Rose C., Lim, Catherine Jane C., Pahilanga, Jobelle F., Tiu, Wilburt Noel S.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Capital investments > Philippines; Capital > Philippines; Venture capital > Philippines; Investments > Philippines; Profit > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14193
• Institution: De La Salle University

Capital Structure is the mixture of debt and equity used by a company to attain financing funds that minimize costs while correspondingly maximize market value. This is essential for the firm's growth, survival and performance. Measures of profitability have increasingly received stakeholders' focus. Since findings show that the capital structure model enforces significant effects on profitability, capital structure determinants are presumed to fundamentally influence the company's overall profitability. The property sector in the Philippines has vastly increased over the years, and since there have been limited research undertaken to study this particular sector the proponents opted to focus the study on the real estate sector. As the study adopted several statistical techniques such as the Multivariate Linear Regression, Multicollinearity test, and Heteroscedasticity test, a better capital structure model was developed consisting of the most significant determinants such as the short-term solvency, managerial performance and growth.