Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/218143 
Year of Publication: 
1995
Citation: 
[Journal:] South African Journal of Business Management [ISSN:] 2078-5976 [Volume:] 26 [Issue:] 3 [Publisher:] African Online Scientific Information Systems (AOSIS) [Place:] Cape Town [Year:] 1995 [Pages:] 90-96
Publisher: 
African Online Scientific Information Systems (AOSIS), Cape Town
Abstract: 
In this article we consider the use of debt by South African firms. There are two possible uses of debt: firstly, it is a method of raising finance and secondly, a method of corporate governance. Within the South African corporate environment it is not clear whether firms would use debt for both or either of these purposes. We are unable to find evidence in favour of Modigliani and Miller's proposition one or proposition two. It appears that firms do not use debt for corporate governance purposes and we present evidence that there could be an agency problem inherent within the structure of South African business.
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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