Abstract
The objective of this study is to discover the determinants of the capital structure of 304 companies in the manufacturing sector of Guayaquil, during the period 2012-2016 and which theory best condenses the financing decisions of companies. The importance of it lies in verifying the determinants of indebtedness in companies in a developing country and comparing the results with the predictions of the Trade-off and the Pecking Order theories. As a methodology, a panel data structure has been used together with a fixed effects model. After reviewing the literature, an Ordinary Least Squares regression model was used to discover the correlation and statistical significance between the dependent variable (debt ratio) and a set of selected independent variables. In this study, the Pecking Order theory had a greater explanatory power than the Trade-off theory. However, no statistical evidence was found to support the importance of growth expectations on the corporate capital structure.
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