Empirical study on the simultaneous relationship of ownership structure, capital structure and firm value using panel data from selected publicly listed firms in the Philippines

• Main Authors: Alberto, Rosette Marie Faith I., Mamburam, Cleah Waye E., Toledo, Nissa Marie M.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Industrial management; Business enterprises > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18464
• Institution: De La Salle University

Firm value, if not the most, is one of the major aspects investors take a look at when considering which firms to invest. In many literatures, an important determinant of firm value is capital structure, recognized as a celebrated topic in corporate finance, focusing on financing structure and decisions. Additionally, how firms choose to finance their operations is also heavily dependent on the ones who have control and influence over the firm this is where ownership structure comes in. Suggesting that ownership concentration and/or corporate governance is a major determinant for capital sructure. Subsequently, ownership structure is also affected by other factors. The objective of this study is to look at the relationship of firm value, capital structure ad ownership structure of selected Philippine public listed companies. The period 2000-2010 was selected in this study, whihc reflected the post Asian financial crisis period. Using data gathered from Philippine Stock Exchange (PSE), Securities Exchange Commission (SEC), Technistock and Osiris and applying simultaneous econometrics modeling and panel data approach, this study infers that ownership structure is positively correlated with capital structure and capital structure decreases firm value. Most exogenous variables used in the study exhausted significant results.