10 Collect data on variables related to the determination of corporate capital structure from FAME or Thomson ONE Banker and company annual reports.

Construct a panel data set for N firms over a T year period with K independent variables. Build a panel data model where the dependent variable is the debt-to-equity ratio or financial leverage (using EViews, LIMDEP, RATS or other packages). Firm size, profitability, profit variability, business risk, growth opportunities, non-debt tax shields, cash holdings, dividend payouts, collateral assets, asset tangibility, uniqueness, shareholder structure and concentration, and an industry dummy may be considered for independent variables.