The Pursuit of The Target Capital Structure: An Empirical Study of Pharmaceutical Companies Listed in The SEC

Saiwiwat, Paweena (2009) The Pursuit of The Target Capital Structure: An Empirical Study of Pharmaceutical Companies Listed in The SEC. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Capital structure has been one of the most controversial issues in the ground of finance during past decades. Although there have been a number of existing theories and empirical studies observing patterns involved in choosing a capital structure, until now, there is no universal one. In this regard, this dissertation attempts to explain the capital structures. The capital structures in this case involve the study of 6 ratios regarding to debt-to-equity, debt-to-assets, and equity-to-assets, or this research can be called the study of debt-equity structures.

This study attempts to answer the question concerning the debt-equity structures of the pharmaceutical companies listed in the SEC during the period 1998 to 2008. With the objective to investigate whether the pharmaceutical firms pursue the target debt-equity ratios or not, the report employs the simple regression analysis developed from the Partial Adjustment Model. The results from the methodology reveal that is the weak evidence support debt-equity ratios of pharmaceutical firms in the sample converge to the industry mean. Though, the results give strong support that most firms’ ratios have been moved toward the target ratio. In this regard, unavoidable research limitations are also mentioned for further studies.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 13 Nov 2009 14:17
Last Modified: 14 Sep 2016 15:02
URI: http://eprints.nottingham.ac.uk/id/eprint/23426

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