Thee determinants of capital structure: Evidence from UK companies
This study was conducted to explain the determinants of capital structure for UK companies with ordinary linear regression model. We chose 446 non-financial companies across 15 industries as data set and adopted two models to for investigation. The result of our analysis showed that the chosen expla...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2011
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| Online Access: | https://eprints.nottingham.ac.uk/25261/ |
| Summary: | This study was conducted to explain the determinants of capital structure for UK companies with ordinary linear regression model. We chose 446 non-financial companies across 15 industries as data set and adopted two models to for investigation. The result of our analysis showed that the chosen explanatory variables have significant influence on both short-term and long-term debt ratios, but showed less significance when regressing total leverage. In general the coefficient estimates are consistent to theoretical predictions but we failed to provide evidence of significant impact on any leverage level from growth rate. In addition it is found that there is distinctness in debt ratio for different industry classification however the regression result did not show much significance. |
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