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The Determinants of the Capital Structure of Listed Australian Companies: The Financial Manager's Perspective

Author

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  • D. E. Allen

    (Department of Accounting and Finance, University of Western Australia, Nedlands WA 6009.)

Abstract

This paper reports the results of an investigation of financial managers' perceptions of the broad determinants of listed Australian company capital structure decisions. The research method involves a series of field interviews undertaken with the company secretaries and senior financial personnel of 48 listed Australian companies. The results are consistent with Donaldson's previously reported American findings, in that companies appear to follow a pecking order with respect to funding sources and also report policies of maintaining spare debt capacity.

Suggested Citation

  • D. E. Allen, 1991. "The Determinants of the Capital Structure of Listed Australian Companies: The Financial Manager's Perspective," Australian Journal of Management, Australian School of Business, vol. 16(2), pages 103-128, December.
    • Handle: RePEc:sae:ausman:v:16:y:1991:i:2:p:103-128
    DOI: 10.1177/031289629101600201
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    References listed on IDEAS

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    4. Karen Mills & Steve Morling & Warren Tease, 1993. "Balance Sheet Restructuring and Investment," RBA Research Discussion Papers rdp9308, Reserve Bank of Australia.
    5. Ramachandran Azhagaiah & Candasamy Gavoury, 2011. "The Impact of Capital Structure on Profitability with Special Reference to IT Industry in India vs. Domestic Products," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 9(4 (Winter), pages 371-392.
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    7. Andriansyah, Andriansyah, 2009. "The Static Trade-Off against the Pecking Order Hypotheses of Firms’ Capital Structure: A Survey of Testing Methodology and Proxy Variable," MPRA Paper 105411, University Library of Munich, Germany.
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    10. Geoffrey Shuetrim & Philip Lowe & Steve Morling, 1993. "The Determinants of Corporate Leverage: A Panel Data Analysis," RBA Research Discussion Papers rdp9313, Reserve Bank of Australia.
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