ID: 17198
Authors:
Susana Jorge, Manuel José da Rocha Armada.
Source:
Revista de Administração Contemporânea, v. 5, n. 2, p. 9-31, May-August, 2001. 23 page(s).
Keyword:
capital structure , determinant factors , panel data analysis
Document type: Article (Portuguese)
Show Abstract
In this
paper we analyse, for some of the largest Portuguese companies, the
relevance and validity of several factors considered in the literature
as determinants of companies' capital structure (represented by the debt
ratio): Size, Growth, Business Risk, Profitability, Assets
Composition, Non-Debt Tax Shields, Activity Sector and Ownership
Control. Using panel data for the period from 1990 to 1995, we present
an empirical study in which we seek to describe the effects that these
variables have on companies' debt level in each year of the analysis,
trying to identify relationships among the variables, either over time
or across companies in the same activity sector. We also analyse the
particular effects of each company and each year, that are not included
in the explanatory variables of the used models. Although we have
reached some results identical to those obtained with other
methodologies used at an international level, it is a fact that it did
not always happened like that. In our opinion, this was due to the
specific characteristics of the companies in our sample and, in general
terms, to those of the Portuguese (financial) market.