This paper explores the factors that influence capital structure decisions in South Africa from the perspective of the Chief Financial Officer (CFO). The results of a survey of 33 CFOs of JSE listed companies find that South African CFOs are equally likely to follow the Pecking Order and Static Trade-Off theories. However, small companies are more likely to follow the Pecking Order theory while large companies are more likely to follow the Static Trade-Off theory. In addition, the results show that South African companies are more likely to follow the Static Trade-Off theory than companies in other emerging countries.
Reference:
De wet, L and Gossel, SJ. South African Capital Structure Decisions: A Survey of Listed Companies. Journal of African Business, vol. 17 (1)
De Wet, L. H., & Gossel, S. (2015). South African Capital Structure Decisions: A Survey of Listed Companies. http://hdl.handle.net/10204/8407
De Wet, Lambert H, and SJ Gossel "South African Capital Structure Decisions: A Survey of Listed Companies." (2015) http://hdl.handle.net/10204/8407
De Wet LH, Gossel S. South African Capital Structure Decisions: A Survey of Listed Companies. 2015; http://hdl.handle.net/10204/8407.
Copyright: 2015 Taylor & Francis. Due to copyright restrictions, the attached PDF file only contains the post print version of the full text item. For access to the full text item, please consult the publisher's website. The definitive version of the work is published in Journal of African Business, vol. 17 (1), pp 21
