| Author: | Lo, Yuen-yee Anne |
| Title: | A study of the financial leverage technique employed by listed companies in Hong Kong |
| Degree: | M.B.A. |
| Year: | 1993 |
| Subject: | Corporations -- China -- Hong Kong -- Finance Leveraged buyouts -- China -- Hong Kong Corporate debt -- China -- Hong Kong Hong Kong Polytechnic -- Dissertations |
| Department: | Department of Management |
| Pages: | iv, 60 leaves : ill. ; 30 cm |
| Language: | English |
| Abstract: | This project aims at finding out the actual practice by listed companies in Hong Kong in respect of their captial structure policies and strategies. While academic researches tend to support the theory of the existence of an optimal capital structure which simultaneously maximizes the firm's value and minimizes its average cost of capital, this project tries to find out whether listed companies in Hong Kong actually put this theory into practice. This project also tries to find out whether there is inter-industry difference in respect of the optimal capital structure for companies in different industries. Findings from this project reveal that listed companies in Hong Kong are comparatively low geared as compared with companies in other countries. The findings also suggest a generally rising trend of gearing ratios for listed companies in Hong Kong which may suggest that listed companies in Hong Kong have not yet achieved their respective optimal capital structures so that they are increasing the use of debt financing to increase the firms' value. However, the findings fail to provide conclusive evidence as to the existence of inter-industry difference. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b11509594.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 2.05 MB | Adobe PDF | View/Open |
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