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Capital Structure And Financial Risk: Empirical Evidence In Smes Estructura De Capital Y Riesgo Financiero: Evidencia Empirica En Pymes Hoteleras

Author

Listed:
  • Luis Alfredo Gallardo Millan
  • Ezequiel Aviles Ochoa

Abstract

This work presents the financial performance of 21 hotel companies, linking components of valuation to determine strategic financial risk. The theoretical context establishes that financial decision-making at the strategic level in small and medium-sized enterprises (SMEs) requires the understanding of different paradigms. Risk management establishes control over the capital structure, retention rate, growth rate, and capital risk-adjusted performance allowing creation of strategies that can become a competitive advantage. The results indicate that strategic financial risk is identified by determining the capital structure that maximizes the value of companies.

Suggested Citation

  • Luis Alfredo Gallardo Millan & Ezequiel Aviles Ochoa, 2015. "Capital Structure And Financial Risk: Empirical Evidence In Smes Estructura De Capital Y Riesgo Financiero: Evidencia Empirica En Pymes Hoteleras," Revista Global de Negocios, The Institute for Business and Finance Research, vol. 3(4), pages 1-10.
    • Handle: RePEc:ibf:rgnego:v:3:y:2015:i:4:p:1-10
    as

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    References listed on IDEAS

    as
    1. Stewart C. Myers, 2001. "Capital Structure," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 81-102, Spring.
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    More about this item

    Keywords

    Capital Structure; Financial Risk; and SMEs;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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