The Open Business Journal

2009, 2 : 48-53
Published online 2009 April 01. DOI: 10.2174/1874915100902010048
Publisher ID: TOBJ-2-48

The Determinants of Capital Structure in the Service Industry: Evidence from United States

Amarjit Gill , Nahum Biger , Chenping Pai and Smita Bhutani
College of Business Administration, TUI University, CA, 90630, USA

ABSTRACT

The paper seeks to extend Biger, Nguyen, and Hoang’ (2008) findings regarding the determinants of capital structure. Empirical results show that that leverage is negatively related to the firm’s profitability. This paper offers useful insights for the service industry owner/operators and managers based on empirical evidence.