Determinants of capital structure: some Australian service sector evidence

Capital structure is one of the widely researched finance topics which generated a healthy body of literature in different countries. The key aim of this paper is to examine the determinants of leverage of seven service sector listed companies in the Australian stock exchange during the years 2012-2014. The study uses 57 individual firms and a total of 171 firm-year observations. The analyses of pooled and panel regression models reveal significant relationship between firm-specific and industry-specific determinants (factors) affecting leverage decisions of these firms. The factors are, however, dissimilar to factors observed in country-specific studies undertaken elsewhere. The reasons for differences in observed and extant factors in capital structure studies are explained, and the implications for research are outlined in this paper.

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World Business, Finance and Management Conference

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978-1-922069-91-7

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