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The purpose of this study was to examine the close association between management and firm characteristics and the perceived importance of capital structure theories of listed companies in Sri Lanka. A sample of 37 companies was selected from the top 50 listed companies in The Lanka Monthly Digest 50 (LMD) for the year 2010/2011. Data were obtained from questionnaire, annual reports and The Lanka Monthly Digest 50. The results provide mixed support for the notion that firms does trade-off costs and benefits to derive an optimal debt ratio. As a result of the findings that CFOs of listed…mehr

Produktbeschreibung
The purpose of this study was to examine the close association between management and firm characteristics and the perceived importance of capital structure theories of listed companies in Sri Lanka. A sample of 37 companies was selected from the top 50 listed companies in The Lanka Monthly Digest 50 (LMD) for the year 2010/2011. Data were obtained from questionnaire, annual reports and The Lanka Monthly Digest 50. The results provide mixed support for the notion that firms does trade-off costs and benefits to derive an optimal debt ratio. As a result of the findings that CFOs of listed companies in Sri Lanka consider different factors in trading off the costs and benefits of debt financing. The survey finds little support but not strongly on the argument favor to pecking order model whereas it finds no evidence of perceived importance of agency cost theory of listed companies in Sri Lanka. This research finds no significant association between management and firm characteristicsand capital structure theories in corporate financing decisions.
Autorenporträt
Riyad Rooly é professor de Contabilidade e Finanças na Universidade do Sudeste do Sri Lanka. Tem um BBA em Contabilidade e um MAB em Finanças. É também Associate Certified Management Accountants do Sri Lanka. Os seus interesses de investigação centram-se no domínio da banca e das finanças, da governação empresarial e da estrutura de capital.