Long Term Financing Decisions : Views and Practices of Financial Managers in the Caribbean

This paper reports the findings of a survey of large non-financial corporations in the Caribbean. The survey results suggest that the vast majority of large non-financial corporations in the Caribbean prefer to rely on a hierarchy of financing sources instead of trying to maintain a target capital structure. The responses also suggest a preference for debt among the firms, and that unlike standard formulations in finance theory, financing decisions are made in a dynamic manner and are possibly intertwined with investment and dividend decisions