The financial structure of firms in an economy without capital markets

Content Provider	Semantic Scholar
Author	Munyo, Ignacio
Copyright Year	2006
Abstract	This paper analyzes the determinants of the financial structure of firms in an economy without capital markets. Once the relevant financial sources of funds for the Uruguayan firm are defined, their determinants are analyzed through cross section econometric models. The research casts out that size, tangibility and profitability are key variables as determinants of the financial structure such as the theories suggest. The less profitable firms are those mainly financed through external funding and the firms with a bigger proportion of tangible assets have easier access to long-term banking credit. On the other hand, the firms that do not possess these features or the ones that present a smaller relative proportion of these will tend to get financing through trade credit lines.
Starting Page	131
Ending Page	149
Page Count	19
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.um.edu.uy/docs/revistafcee/2006/Financial_structure.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article