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South African Capital Structure Decisions: A Survey of Listed Companies

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  • Lambert H. de Wet
  • Sean Joss Gossel

Abstract

This paper explores the factors that influence capital structure decisions in South Africa from the perspective of the Chief Financial Officer (CFO). The results of a survey of 33 CFOs of JSE listed companies find that South African CFOs are equally likely to follow the Pecking Order and Static Trade-Off theories. However, small companies are more likely to follow the Pecking Order theory while large companies are more likely to follow the Static Trade-Off theory. In addition, the results show that South African companies are more likely to follow the Static Trade-Off theory than companies in other emerging countries.

Suggested Citation

  • Lambert H. de Wet & Sean Joss Gossel, 2016. "South African Capital Structure Decisions: A Survey of Listed Companies," Journal of African Business, Taylor & Francis Journals, vol. 17(2), pages 167-187, May.
    • Handle: RePEc:taf:wjabxx:v:17:y:2016:i:2:p:167-187
    DOI: 10.1080/15228916.2016.1132509
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