Determinants of capital structure: An empirical analysis of firms listed in the Philippine Stock exchange index

• Main Authors: Canlas, Aeisle, Dalomias, Leanne, Go, Jelyssa Mae, Lacandili, Gemestrel
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Corporations > Finance; Capital investments; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/6813
• Institution: De La Salle University

This paper examines how firms in the Philippines utilize financing decisions through their capital structure. The researchers examined the effect of profitability, firm size, liquidity, tangibility, growth opportunities, and non-debt tax shield to capital structure on firms. The sample for this study includes 24 listed firms in the Philippine Stock Exchange index. Financial data from years 2007-2016 was obtained through Compustat IQ with Bloomberg as supplementary database. Panel data model was used for statistical analysis with the help of statistical software, Stata 13. The results of this study showed that profitability, firm size and liquidity have a significant relationship in leverage. The mentioned variables are also related to capital structure theories, namely, trade-off theory and pecking order theory. The researchers suggest that future studies may include a wider sample with more macroeconomic and other firm-specific variables to further improve the study.