DETERMINANTS OF THE FIRM''S CAPITAL STRUCTURE

This book seeks empirically to identify the determinants of the very small firms financial leverage. This is important because both these enterprises have been under-researched and research in the area has been troubled by samples biased towards very large enterprises. Results support hypotheses that size, growth, operational cycle and entrepreneur s risk tolerance are positively and business risk, asset composition, profitability and inflation negatively associated with financial leverage. Additionally, there is support for a hypothesized relationship with industry but not with enterprise age. To achieve a wider understanding of these relationships, financial leverage is studied in combination with own working capital.

Autorentext

Barbosa is a Tax Officer at the Federal Tax Secretariat in Belo Horizonte City, Brazil. He was formerly an Assistant Professor of Finance at the Federal University of Viçosa. Moraes works for the Espírito Santo State Government in Vitória City, Brazil. She was formerly teaching finance at the Federal University of the Espírito Santo State.