ISSN: 0186-1042 ISSN-e: 2448-8410
Determinants of capital structure: an empirical study of the manufacturing sector at Ecuador
PDF (Español (España))
PDF

Keywords

Financing
capital structure
manufacturing
leverage
Trade-off
Pecking Order

How to Cite

Gutiérrez Ponce, H., Morán Montalvo, C., & Posas Murillo, R. (2018). Determinants of capital structure: an empirical study of the manufacturing sector at Ecuador. Accounting & Management, 64(2), e104. https://doi.org/10.22201/fca.24488410e.2018.1848

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.

https://doi.org/10.22201/fca.24488410e.2018.1848
PDF (Español (España))
PDF

© 2015, School of Accounting and Management, National Autonomous University of Mexico. All rights reserved. Publication of the article implies full assignment of property rights (copyright) in Journal of Accounting and Management. The publication mreserves the right to total or partial reproduction of the work in other print, electronic or any other alternative means, but always recognizing its responsibility.

Unless otherwise stated, all contents of the electronic edition of the journal are distributed under a license and distribution "Creative Commons Attribution-Noncommercial 4.0 International" (CC-by). You can see from here the version of the license information. This circumstance must be expressly stated in this way when necessary.

Downloads

Download data is not yet available.