The Capital Structure of Sri Lankan Companies
Lalith P. Samarakoon
University of St. Thomas
Sri Lankan Journal of Management, Vol. 4, Nos. 1&2, pp. 18-30, 1999
This study examines the use and the determinants of leverage in a cross-section of quoted companies in Sri Lanka using a sample of firms listed in the Colombo Stock Exchange. The results indicate that the use of long-term debt is relatively low. The tangibility and growth opportunities are not related to leverage. Firm size is reliably positively related to leverage indicating a tendency for large firms to use more leverage. Profitability is reliably negatively correlated to leverage suggesting that more profitable firms tend to use less leverage.
Number of Pages in PDF File: 13
Keywords: Capital Structure, Leverage, Sri Lanka, Colombo Stock Exchange
JEL Classification: G15, G32Accepted Paper Series
Date posted: April 28, 2009
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