Indebtedness of Restaurant Firms in Portugal: Application of Theories of Capital Structure

Abstract

The present study aims to identify the determinants of the capital structure of restaurants firms in Portugal, as well as to analyze the application of capital structure theories in those companies.

In order to reach the objectives, a sample of 400 companies belonging to the restaurant sector was used. The analysis was carried out between 2008 and 2017, and multiple linear regression, based on panel data, was applied.

The obtained results allowed to verify that the considered variables have different effects on the capital structure of the companies under study and that the restaurant sector partially applies the trade-off, pecking order and signaling theories.

Citation

Brito, A., Pinho, C. and Azevedo, G. (2020), "Indebtedness of Restaurant Firms in Portugal: Application of Theories of Capital Structure", Ratten, V. (Ed.) Entrepreneurial Opportunities, Emerald Publishing Limited, Leeds, pp. 99-115. https://doi.org/10.1108/978-1-83909-285-520201008