Notice of RetractionFirm Size and Capital Structure Choice

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

The main factors that affect the financing decisions of firms have been the key theme in the study of corporate finance. We examined the hypotheses (i) the determinants of capital structure are different for micro, medium and large firms; and (ii) the factors that determine whether or not a firm issues debt are different from those that determine how much debt it issues. We find strong support for both hypotheses by using a binary choice model to explain the amount issued. Nevertheless, in describing the capital structure choices made by all size -based groups of firms, the pecking order theory is most suitable.