Please use this identifier to cite or link to this item: http://ir.lib.seu.ac.lk/handle/123456789/755
Title: Management and firm characteristics
Other Titles: an empirical study on static trade-off theory and practice on debt financing decision of listed companies in Sri Lanka
Authors: Riyad Rooly, M.S.A
Weerakoon Banda
Jamaldeen A, Y.K
Keywords: Corporate financing decision
Capital structure
Static trade-off theory
Optimal debt ratio
Sri Lanka
Issue Date: 17-Jan-2014
Publisher: South Eastern University of Sri Lanka
Citation: Proceedings of the Second Annual Research Conference 2013 on "Emergence of Novelty in Business Management, pp 41- 55
Abstract: The research is about the corporate financing decisions based on capital structure theories, especial reference to static trade-off theory and practice of listed companies in Sri Lanka. The result provides mixed support for the notion that firms does trade-off costs and benefits to derive an optimal debt ratio. As a result, the findings that CFOs of listed companies in Sri Lanka consider different factors in trading off the costs and benefits of debt financing. The research finds no significant association between management and firm characteristics and static trade-off theories in corporate financing decisions. The conclusions drawn from this study were that the corporate financing decisions in relation to static trade-off theory differ from developed countries to developing country in many ways such as Sri Lanka. However, for corporate financing decisions in relation to static trade-off theory to have full impact on firm value like U.S.A and Europe countries, CFOs of listed companies in Sri Lanka should consider static trade-off theory that are in line with corporate financing decisions.
URI: http://ir.lib.seu.ac.lk/handle/123456789/755
ISSN: 2279-1280
Appears in Collections:2nd Annual International Research Conference - 2013

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