Capital structure decisions: The views of investment advisors

Capital structure decisions: The views of investment advisors

In this research a survey was used to gain insight into the factors that affect the choice of capital structure, from the perspective of investment advisors. Content analysis of responses to open-ended questions in the questionnaire and interviews showed a clear support for the optimal capital struc...

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Bibliographic Details
Main Authors: Fani Titi, Merle Sandler, Mike Ward
Format: Article
Language:English
Published: AOSIS 1995-06-01
Series:South African Journal of Business Management
Online Access:https://sajbm.org/index.php/sajbm/article/view/824
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spelling doaj-7dbe03b8cf6245a28b64e33aa34617642021-04-02T14:56:55ZengAOSISSouth African Journal of Business Management2078-55852078-59761995-06-01262586310.4102/sajbm.v26i2.824543Capital structure decisions: The views of investment advisorsFani Titi0Merle Sandler1Mike Ward2Graduate School of Business Administration, University of the WitwatersrandGraduate School of Business Administration, University of the WitwatersrandGraduate School of Business Administration, University of the WitwatersrandIn this research a survey was used to gain insight into the factors that affect the choice of capital structure, from the perspective of investment advisors. Content analysis of responses to open-ended questions in the questionnaire and interviews showed a clear support for the optimal capital structure theory and indicated theory-based approaches to the choice between different financing instruments. Factor analysis showed that taxation implications, market concerns and financing costs affect capital structure decisions. The results indicate that asymmetric information and signalling are important concerns but provide little evidence regarding the importance of agency considerations.https://sajbm.org/index.php/sajbm/article/view/824
collection DOAJ
language English
format Article
sources DOAJ
author Fani Titi
Merle Sandler
Mike Ward
spellingShingle Fani Titi
Merle Sandler
Mike Ward
Capital structure decisions: The views of investment advisors
South African Journal of Business Management
author_facet Fani Titi
Merle Sandler
Mike Ward
author_sort Fani Titi
title Capital structure decisions: The views of investment advisors
title_short Capital structure decisions: The views of investment advisors
title_full Capital structure decisions: The views of investment advisors
title_fullStr Capital structure decisions: The views of investment advisors
title_full_unstemmed Capital structure decisions: The views of investment advisors
title_sort capital structure decisions: the views of investment advisors
publisher AOSIS
series South African Journal of Business Management
issn 2078-5585
2078-5976
publishDate 1995-06-01
description In this research a survey was used to gain insight into the factors that affect the choice of capital structure, from the perspective of investment advisors. Content analysis of responses to open-ended questions in the questionnaire and interviews showed a clear support for the optimal capital structure theory and indicated theory-based approaches to the choice between different financing instruments. Factor analysis showed that taxation implications, market concerns and financing costs affect capital structure decisions. The results indicate that asymmetric information and signalling are important concerns but provide little evidence regarding the importance of agency considerations.
url https://sajbm.org/index.php/sajbm/article/view/824
work_keys_str_mv AT fanititi capitalstructuredecisionstheviewsofinvestmentadvisors
AT merlesandler capitalstructuredecisionstheviewsofinvestmentadvisors
AT mikeward capitalstructuredecisionstheviewsofinvestmentadvisors
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