Are there reliable determinant factors of capital structure decisions? Empirical study of SMEs in different regions of Portugal

Fernanda Matias and Zelia Serrasqueiro ()

Research in International Business and Finance, 2017, vol. 40, issue C, 19-33

Abstract: On the basis of the empirical literature review about the capital structure decisions in Portuguese SMEs, this study analyses the relationships between the determinants – profitability, size, age, asset structure and growth, identified as reliable determinants in the empirical literature, and debt for SMEs located in different regions of Portugal (NUTS II). The global sample is made up of 11.016 SMEs and covers the period between 2007 and 2011. Overall, the results suggest that those determinants are reliable in explaining Portuguese SME capital structure decisions, suggesting that these decisions are closer to the predictions of Pecking Order Theory in comparison to the assumptions of Trade-off Theory. However, both financial theories are not enough to explain SME capital structure decisions.

Keywords: Capital structure; Panel data; Regional heterogeneity; SMEs (search for similar items in EconPapers)
JEL-codes: C23 G32 L26 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531916302975
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:40:y:2017:i:c:p:19-33

DOI: 10.1016/j.ribaf.2016.09.014

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().