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This work researches the link between a company’s size and its debt level. The study was conducted over 816 uruguayan manufacturing firms with 6 or more employees for the period between 2010 and 2016. In addition to the company’s size, its debt level is affected by other variables. Because of this, in conjunction with a company’s size and debt level, the impact that other variables which may influence debt level was also researched. As a debt level indicator, the study considered the ratio between Total Liabilities to Total Assets, plus two proxies to the company’s size: number of employees (SIZE 1) and asset level (SIZE 2). Both variables considered as proxies to SIZE, were of significance and positively related with the debt level. The methodological strategy followed was of modeling utilizing panel data with estimates related to fixed effects. |
