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A Comparative International Study of Growth, Profitability, and Risk as Determinants of Corporate Debt Ratios in the Manufacturing Sector

Published online by Cambridge University Press:  19 October 2009

Norman Toy ,
Arthur Stonehill ,
Lee Remmers ,
Richard Wright  and
Theo Beekhuisen
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Extract

The purpose of this paper is to test the hypothesis that three financial performance variables, namely, growth, profitability, and risk, are determinants of corporate debt ratios in the manufacturing sector in industrialized countries. In particular, a linear model is hypothesized and Ordinary Least Squares is used to estimate the coefficients for the relationship. The sample used contains 816 firms in four selected industries in five industrialized countries during the period 1966–72.

Type
Financing the Multinational Firm
Information
Journal of Financial and Quantitative Analysis , Volume 9 , Issue 5 , November 1974 , pp. 875 - 886
Copyright
Copyright © School of Business Administration, University of Washington 1974

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References

REFERENCES

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