Factors affecting the capital structure
216307169
Factors affecting the capital structure: New evidence from GCC countries
This study aims to identify the firm specific determinants of capital structure in the Gulf Cooperation Council (GCC) countries, namely Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and the United Arab Emirates. A number of regression models are employed on the data of 329 non financial firms for the period between 2009 and 2017. The data has been analysed at both country level and regional level to look for the evidence on the major determinants of capital structure and the differences, if any. The findings indicate that size, tangibility, and growth opportunities have positive impact on leverage. On the other hand, profitability, age, financial constraints, liquidity, and government ownership affect the leverage negatively. There is a weak evidence for a positive relationship between leverage and operating risk. The results also imply that the institutional features of GCC countries have a minor effect on the leverage within a general model for the region. Although GCC countries have a unique institutional environment that distinguishes them substantially from other countries, the current study provides evidence that the capital structure decisions are influenced by the same factors as in other developing countries.
Audil Rashid Khaki Ahmet Cumhur Akin
226693318
Factors Affecting the Capital Structure of the Textile Industry in Bangladesh: An Inferential Study
Article History Received: 19 May 2020 Revised: 22 June 2020 Accepted: 24 July 2020 Published: 17 August 2020
Aysha Ashraf Sonia Rezina
211749807
Factors Affecting the Capital Structure and Its Impact on Tax Payment through Free Cash Flow to State Owned Enterprises in Indonesia Stock Exchange
This study aims to determine and analyze the impact of working capital, current year profit, sales growth, fixed assets, and firm size to tax payment through a capital structure and free cash flow on the stateowned enterprises in Indonesia Stock Exchange in 2013 2017. The design of this research is associative. Samples used as many as 20 state owned enterprises that have gone public in Indonesia Stock Exchange. Collection method using the documentation and literature method. The analysis technique using path analysis, estimation model using ANOVA test and classical assumption, which consist of data normality, multicollinearity, heteroscedasticity, autocorrelation, and coefficient of determination test. The results showed: working capital, current year profit, sales growth, fixed assets, and firm size positive and significant effect on the capital structure, free cash flow, and the tax payment, but no significant effect on free cash flow through capital structure, and also no significant effect to the tax payment through the capital structure and through the free cash flow.
International Academic Journal of Economics
Abdul Amid Aziz Didik Susetyo Isnurhadi - Marlina Widiyanti
169236312
Analysis on the Factors Affecting the Capital Structure of Small and Medium Sized Enterprises in China
The capital structure of small and medium sized enterprises is closely related to enterprise financing. At present, the capital structure of small and medium sized enterprises in China is unreasonable. There are disadvantages such as low proportion of internal financing, single external financing channels and excessive short term liabilities. The theory of enterprise capital structure studies how the enterprise arranges its capital structure in its development or contraction, which means how the enterprises determine the ratio of their own capital, equity capital and debt capital in order to maximize their market value. In other words, how to find the optimal capital structure of the enterprise is the central task of the theory. This paper starts from the economic environment and characteristics of small and medium sized enterprises, discusses the internal and external factors affecting the capital structure of small and medium sized enterprises and puts forward the countermeasures and suggestions for optimizing capital structure of small and medium sized enterprises.
Jiaxu Jiang Futang Dong Bingxin Du
55362335
Analysis of The Factors Affecting The Capital Structure of Oil Exploration And Production Companies: Comparative Analysis of TP And The Five Major Oil Exploration And Production Companies in The World
Oil and gas companies are still the most powerful and profitable companies in the world. Knowing the factors that affect the preferences for forming a capital structure of such a critical sector will provide a substantial contribution to the field of capital structur theory which is understated in thef literature. Besides, determining capital structure composition and financing decisions of the oil and gas companies are important issues for national and international investors who are considering to invest in the oil and gas sector, for suppliers providing services to the sector and for banks providing funds to the sector. In this context, for analyzing the factors affecting the capital structures of EXXONMOBIL, BP, SHELL, PETROBRAS, LUKOIL and Turkish Petroleum (TP) linear regression and panel data regression analysis are perfomed by using the data of these companies for the years 2006 2014 (covering 36 quarter period) Empirical results revealed that capex, operating profit, risk and quick ratio have negative relation with leverage, whereas operating net cashflow growth opportunities size (all together forming an independent variable) has positive relation with leverage. Additionally, our empirical results mostly support the pecking order theory.
Mustafa Boz Mehmet Lutfi Arslan
55900901
Accounting Factors Affecting the Capital Structure in the Asian Economic Community
This paper investigates the accounting factors that affect capital structures in the ASEAN Economic Community consisting of listed firms in the primary stock markets in Indonesia, Malaysia, the Philippines, Singapore and Thailand. Capital structures are defined by total debt to capital and long term debt to capital ratios. Tangibility, profitability, firm size, earnings per share and growth are used to study firm specific effects. Moreover, interest rates and country dummy variables are included to observe country specific effects in this region. The results suggest that tangibility, profitability and size are robust and consistent throughout the period. The significant positive relationship between growth and leverage can be explained by non monotonic behavior. Managers' financing decisions are based on the cost of financing rather than maintaining their high EPS. According to the results, trade off theory explained most of the relationships with capital structure.
Matthias A Nnadi
169093579
THE ANALYSIS OF FACTORS AFFECTING THE CAPITAL STRUCTURE ON LISTED MINING COMPANIES IN INDONESIA STOCK EXCHANGE
The objectives of this research are to examine the effect of Assets Growth, Likuidity, Assets Structure, and Sales Growth influence simoultaneously and partially on Capital Structure. Research conducted at mining companies that listed on Indonesia Stock Exchange period 2012 2015. The research population was 41 companies, with the sample of 14 companies with sampling using purposive sampling technique. The analytical method used is multiple linear regression analysis, which previously tested with the classical assumption. The result showed that the Assets Growth, Likuidity, Assets Structure and Sales Growth influence simultaneous on the Capital Structure. The research also revealed that, Assets Growth, Likuidity, Assets Structure and Sales Growth influence partially negative significant on the Capital Strucuture. On the other hand, R Square value amnounted at 32.6% its mean that 32,6% movement of Capital Structure can be predicted from the movement of the four independent variables. Keywords capital structure, assets growth, likuidity, assets structure, sales growth
Charaka M Nandatama Sulastri Sulastri Taufik Taufik
198945835
Factors Affecting the Capital Structure in Textile and Garment Listed in Indonesia Stock Exchange
The purpose of this study was to determine and analyze the influence simultaneously and partially on these factors. The data used is secondary data. The study population was textile and garment companies listed in Indonesia Stock Exchange in 2004 2008. Sampling was done by purposive sampling method and generated eight qualified company. The data analysis used is multiple linear regressions test. The results showed: (1) size of the company, the characteristics type of industry, sales growth, asset structure, operating leverage, NonDebt Tax Shield and profitability simultaneously affect the capital structure, but other factors greater influence, among others economic conditions, political, social, state security unfavourable. In the company it is a management attitude, the attitude of lenders, market conditions, the company's internal conditions, and financial flexibility. (2) The size of the company, industry characteristics, sales growth, asset structure and profitability is partially effecting on the capital structure, while the operating leverage and Nondebt Tax Shield has no effect on the capital structure. Leverage operation has no effect because the sales from year to year are relatively the same, which is sometimes up and sometimes down. This means that funding by using the fixed costs do not affect the capital structure decisions made by management. While Non Debt Tax Shield has no effect because the textile and garment companies have total assets remained low so it does not obtain a tax advantage in the form of depreciation expense depreciation can be deducted in calculating the amount of tax payable. This indicates that the value of depreciation and amortization, the company is not meaningful enough to add cash flow of the company, so it does not count towards the reduction of corporate debt portion.
Cinde Ririh Windayu
221021160
FACTORS AFFECTING CAPITAL STRUCTURE OF FISHERY ENTERPRISES LISTED ON THE HO CHI MINH STOCK EXCHANGE
The results of this study attempt to identify factors affecting the capital structure of fishery enterprises listed on the Ho Chi Minh Stock Exchange (HOSE) has been established and the parameters are estimated based on table data of 11 seafood enterprises listed on HOSE in the period 2009 2018, give the following conclusion: The results of FEM regression analysis show that the factors affecting the capital structure of fishery enterprises listed on HOSE in the period of 2009 2018 include profitability (beta 0,456; beta 0,506) firm size (beta 0,033; beta 0,043) billion The value of tangible fixed assets (beta 0,307) taxes (beta 0,097) and liquidity of enterprises (beta 0,006) with high statistical significance. In particular, firm size is positively correlated with debt ratio and shortterm debt ratio; profitability is negatively correlated with the ratio of debt and the ratio of shortterm debt; The ratio of tangible fixed assets is negatively correlated with the ratio of short term debt; Liquidity has a negative correlation with the debt ratio and corporate tax rates are positively correlated with the ratio of long term debt. Keyword: Capital structure, fishery enterprises, Ho Chi Minh Stock Exchange.
Tran Thi Kieu Trang Dinh Thi Thu Huong Tran Kieu Nga Pham Thi PhiOanh
221867175
Factors affecting Financing Decision of Indian Power Energy Sector and Testing of Capital Structure Theories: Panel Data Analysis
Capital structure (CS) is defined as combination of various sources of funds employed in business. Appropriate source of financing is inevitable for any company to exist. Present paper analyses the determinants affecting the choice of debt or equity of selected power and energy sector companies of India. For the purpose of empirical testing, panel data of 25 listed companies has been collected for 10 years (2010 2019) Based on panel regression model, the study concludes that profitability, tangibility, liquidity, non debt tax shield, and interest coverage ratio are major determinants of CS choice of selected companies. In addition to this, study also validate the applicability of CS theories in Indian set up and concludes that power energy companies follow the propositions of pecking order and trade off theory. The findings of the paper will be useful to managers as it portrays critical factors affecting the CS and analysing their impact on financing decision. It will also enrich the existing pool of research in the area of capital structure and bridge the gap in existing research.
Rajeshri Desai