Although we find a significant positive relation
between firm growth and the debt ratio, the
growth factor has a relatively small degree of
impact on capital structure, relative to other
significant factors in the model. Its standardized
coefficient is only 0.045 in the final model for
debt ratio. It can be seen that a firm’s growth is
not an important factor among determinants influencing leverage. In general, our findings
support the hypothesis stated that growth is
positively related to debt ratio