Artículos de revistas
Capital structure decisions: What Spanish CFOs think
Decisiones de financiación: Lo que piensan los Directores Financieros Españoles
Registro en:
Academia Revista Latinoamericana de Administración, Vol. 31 No. 2, 2018, pp. 306-325
1012-8255
Autor
De Andrés, Pablo
De La Fuente, Gabriel
San Martín, Pablo
Resumen
Artículo de publicación ISI Purpose
The way business practice adjusts to the models proposed by financial theory has been under moderate yet constant scrutiny from the academic world. The purpose of this paper is to contribute to this line of research by showing CFOs’ perceptions of Spanish companies with regard to their capital structure decisions.
Design/Methodology
The empirical approach is examined using information gathered through a survey answered by 140 CFOs of Spanish companies during 2011. Results are obtained from mean difference tests and ordered probit estimations.
Findings
The results of the paper show that managers attach importance to establishing and monitoring a target debt ratio and the capacity to maintain additional debt in order to provide financial flexibility. In addition, CFOs prefer internal financing to external, using debt when internal funds do not allow investments to be funded.
Originality/Value
On the whole, the results of this research show that trade-off and pecking order theories are not alternative views of the same problem, but represent complementary approaches of how companies define their capital structures.