Determinants of capital structure of Peruvian industrial companies, in the light of the theory of the Pecking Order, period 2007 - 2014

Abstract

This paper shows the product of an empirical and statistical investigation on the determinants of the capital structure in the Peruvian industrial companies that have traded in Lima Stock Exchange, in the period 2007 - 2014, using the Theory of Pecking Order as theoretical reference. This is an explanatory study, non-experimental and longitudinal design. By means of a nonlinear regression with panel data, the results have partially confirmed the validity of this theory in Peruvian reality, while variables such as financial profitability, company size and growth have turned out to be the determinants of the capital structure, while the variables financial deficit and tangibility of assets are constituted as irrelevant factors.