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The International Journal of Management Science and Information Technology (IJMSIT)

The international journal of management Science and information technology (IJMSIT) is a refereed journal and publishes high-quality theoretical and empirical papers in the areas of management science and information technology. This journal reports the impact of information technologies on the managerial and organizational topics. IJMSIT develops a comprehensive and theoretical framework by using a multidisciplinary approach to management and information technology for researchers and practitioners.

 


Editor-in-chief: J. J. Ferreira, University of Beira Interior, Portugal, Email: jjmf@ubi.pt
Published: Quarterly
Copyright: 2012, North American Institute of Science and Information Technology (NAISIT)
ISSN: ISSN 1923-0265 (Print) - ISSN 1923-0273 (Online) - ISSN 1923-0281 (CD-ROM)

DETERMINANTS OF CAPITAL STRUCTURE OF THE INFORMATION TECHNOLOGY INDUSTRY
15 : Special Issue: 2014 Spanish-Portuguese Scientific Management Conference ( 2015-03 )

Abstract:

The access to capital, on adequate maturity and amounts, is one of the major constraints to sustainable development of enterprises. So, this paper aims to study the determinants of capital structure of companies in the portuguese information technology sector, which is one of the most important industries in the exports of high value-added products of the country. To this end, we studied the mainstream research developed over the years where we note that there are numerous theoretical developments, but the diversity of work also led us to verify that the issue is not yet fully savvy among finance researchers. The sample consisted on the major 500 companies of the industry, with reference to the value of turnover, as a criterion. Through multiple linear regression, it was found that the most important variables to explain the capital structure were business risk, size and collateral guarantees, which had a positive relation to the level of debt; and the cost of financing, reputation and profitability, which had a negative relationship with debt. Finally, it was observed that the debt level was higher in companies with a higher commercial activity when compared to firms that have a greater focus on service providing.

Author(s): Nuno Miguel Delicado Teixeira - Portugal - Polytechnic Institute of Setubal
João Filipe Melo Parreira - Portugal - Polytechnic Institute of Setubal
Keywords: 1.1.1 Determinants of capital structure, information technology sector, trade-off, hierarchical selection, strategic positioning.
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