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
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 o...
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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2013
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/6305 |
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| Institution: | De La Salle University |
| Language: | English |
| 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. |
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