Hostname: page-component-5c6d5d7d68-lvtdw Total loading time: 0 Render date: 2024-08-06T17:38:22.198Z Has data issue: false hasContentIssue false
  • English
  • Français

A Comparative International Study of Growth, Profitability, and Risk as Determinants of Corporate Debt Ratios in the Manufacturing Sector

Published online by Cambridge University Press:  19 October 2009

Norman Toy ,
Arthur Stonehill ,
Lee Remmers ,
Richard Wright  and
Theo Beekhuisen
Get access Rights & Permissions [Opens in a new window]

Extract

The purpose of this paper is to test the hypothesis that three financial performance variables, namely, growth, profitability, and risk, are determinants of corporate debt ratios in the manufacturing sector in industrialized countries. In particular, a linear model is hypothesized and Ordinary Least Squares is used to estimate the coefficients for the relationship. The sample used contains 816 firms in four selected industries in five industrialized countries during the period 1966–72.

Type
Financing the Multinational Firm
Information
Journal of Financial and Quantitative Analysis , Volume 9 , Issue 5 , November 1974 , pp. 875 - 886
Copyright
Copyright © School of Business Administration, University of Washington 1974

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Archer, Stephen H., and Faerber, Leroy G.. “Firm Size and the Cost of Equity.” Journal of Finance, March 1966, pp. 69–84.CrossRefGoogle Scholar
[2]Gupta, Manak C. “The Effect of Size, Growth, and Industry on the Financial Structure of Manufacturing Companies.” Journal of Finance, June 1969, pp. 517–529.Google Scholar
[3]Keenan, Michael. “Technology as a Determinant of Corporate Financial Structure.” Working Paper 73–70, New York University, September 1973.Google Scholar
[4]Schwarz, Eli, and Aronson, J. Richard. “Some Surrogate Evidence in Support of the Concept of Optimal Capital Structure.” Journal of Finance, March 1967, pp. 10–18.Google Scholar
[5]Scott, David F. “Evidence on the Importance of Financial Structure.” Financial Management, Summer 1972, pp. 45–50.CrossRefGoogle Scholar
[6]Remmers, Lee; Stonehill, Arthur; Wright, Richard; and Beekhuisen, Theo. “The Determinants of Corporate Financial Structures: An International Perspective.”Paper presented to the Financial Management Association,Atlanta, Georgia,October 13, 1973.Google Scholar
[7]Stonehill, Arthur; Pares, Antonio; Toy, Norman; and Wright, Richard. “An International Comparison of Corporate Financial Goals.”Paper presented to the Academy of International Business,New York,December 28, 1973.Google Scholar