Capital Structure Decisions in the Biopharmaceutical Industry

  title={Capital Structure Decisions in the Biopharmaceutical Industry},
  author={Fabio Zambuto and Carolina Billitteri},
In this paper we deal with the capital structure problem in the pharmaceutical industry that has recently changed its business model because of the biotechnology advent. We propose a set of hypotheses that explains the drivers of capital structure decision in this industry and then we test their validity over a sample of 50 biopharmaceutical firms. The obtained results show that pecking order theory is suitable to explain intra industry differences in capital structure while growth… CONTINUE READING