Abstract

RIVERA GODOY, Jorge Alberto. Financial structure and factors that determined the capital structure of the Valle del Cauca garment manufacturing sector SMEs during the 2000-2004 period. Cuad. Adm. [online]. 2007, vol.20, n.34, pp.191-219. ISSN 0120-3592.

This article presents the results of a study whose purpose was to know the financial structure and determining factors for the capital structure of the garment manufacturing sector SMEs located in Valle del Cauca (Colombia). The main contributions of theories on capital structure and empirical evidence were used as a point of reference and the methodology employed was an economic - financial analysis and an econometric panel data model for the 2000-2004 period. A great and growing concentration of short-term indebtedness was found, especially to financial institutions and vendors although some differences in financing were seen between small enterprises and medium enterprises. Also, we may appreciate that growth opportunities, profit retaining, debt costs, profitability, the age of the company, and non-debt fiscal protection are the factors with most influence when it comes to making decisions on long-term indebtedness. Those findings encourage a detailed inquiry on each one of the pertinent factors in the capital structure.

Keywords : SMEs; garment manufacturing sector; capital structure; entrepreneurial financing; indebtedness determinants.

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