Doi: 1018045/zbefri20161119 determinants of capital structure: an empirical study of companies from selected post-transition economies sasho arsov1, aleksandar naumoski2 abstract the goal of this paper is to examine if there are any determinants that systematically influence the capital structure of the companies. Nber working paper series the capital structure decisions of new firms alicia m robb david t robinson working paper 16272 http:// wwwnberorg/papers/w16272 national bureau of economic research 1050 massachusetts avenue cambridge, ma 02138 august 2010 the authors. Capital structure and stock returns 109 cross-sectional estimation because many firms have zero or tiny debt levels iii data my data set begins with all publicly traded us corporations from the period 1962–2000 from the annual compustat and center for research in security prices (crsp) files the paper predicts debt. The paper tries to examine the impact of capital structure on the financial firm performance of industrial companies in turkey the annual financial statements of 136 industrial companies listed on istanbul stock exchange (ise) were used for this study which covers a period of 8 years from 2005-20012 a multivariate. Contrary to widely held beliefs that startup companies rely heavily on funding from family and friends, a kauffman foundation research paper released today reported that external debt financing such as bank loans are the more common sources of funding for many companies during their first year of. This paper reviews empirical capital structure research, concentrating on papers published since 2005 we begin by documenting three dimensions of capital struc.
This paper relates to an extensive strand of capital structure research that focuses on the impact of corpo- rate income taxes on firm capital structures following up on the seminal work of modigliani and miller (1958), stiglitz (1973) and king (1974) theoretically show that tax discrimination between different forms of funding. The effect of capital structure on profitability: an empirical analysis of listed firms in ghana the journal of risk finance, 6(5), 438-445google scholar abor, j ( 2008), determinants of the capital structure of ghanaian firms, aerc research paper 176, african economic research consortium, nairobi. This study is aimed at determining the capital structure of listed energy sector companies in pakistan, with a view to finding out the impact of four variables, ie tangibility, size, growth and profitability of the firms on their leverage the sample included data for 20 companies for the period spanning 2004 to. To models in which capital structure choice is determined by the predominantly theories on capital structure many papers have been published that are important or representative of a given stream of capital structure research by contrast, we know very little about capital structure stability there has been little if any.
The ever evolving theories of capital structures have been the subject of debate for financial economists since the 1958 seminal work of miller and modigliani modern research favors the symmetric dynamic capital structure model when calculating the mean reversion of leverage adjustment papers. Et al, 2011) however, all these authors considered leverage as a dependent variable and studied various aspects of the capital structure instead, the aim of this paper is to test whether capital structure affects firm performance in ukraine due to the homogeneous accounting standard, single-country study is preferable.
Key words: capital structure, financial performance, business companies i introduction modigliani and miller published their paper on the cost of capital, corporate finance and investment theory in 1958, and hence the development of their capital structure irrelevance theorem, a vast amount of research has focused on. Capital structure, multi criteria decision analysis, mcda availability the erim report series is distributed through the following platforms: academic repository at erasmus university (dear), dear erim series portal social science research network (ssrn), ssrn erim series webpage research papers in. In this paper, we investigate the link between where firms obtain their capital (the private versus public debt markets) and their capital structure (leverage ratio) in the next section, we briefly describe the tradeoff between financial intermediaries (the private debt markets), which have an advantage at collecting information.
We are grateful to markus baltzer for excellent research assistance earlier drafts of the paper were circulated under the title “what can corporate finance say about banks' capital structures” corresponding author: [email protected] we would like to thank franklin allen, allan berger, bruno biais, arnoud boot, mark. Collected and compared to the available evidence suggestions for future research are provided the modern theory of capital structure began with the celebrated paper of modigliani and miller (1958) they (mm) pointed the direction that such theories must take by showing under what conditions capital structure is. Vol 26, no 3 article by anshu handoo and kapil sharma september 2014 this paper reports on a study of the determinants of capital structure in indian companies for the period 2001-2010 research so far has focussed on the capital structure of developed economies, and research in the indian context. This paper studies the determinants of capital structure choice of indian steel companies the main objective of the firm is to explore the most important factors which influence most the choice of capital structure of the steel companies in india the study is basically empirical in nature in the present paper 37 indian steel.
Downloadable even 50 years after modigliani/miller's irrelevance theorem, the basic question of how firms choose their capital structure remains unclear this survey paper aims at summarizing and discussing corresponding recent developments in empirical capital structure research, which, in our view, are promising for. Abstract the various financing decisions are vital for the financial welfare of the firm a false decision about the capital structure may lead to financial distress and eventually to bankruptcy the management of a firm sets its capital structure in a way that firm's value is maximized however, firms do choose different.
32 capital structure and firm performance: evidence from selected business companies in colombo method: this thesis is mainly a quantitative study of the relationship between capital structure and corporate in this research paper, pratheepkanth (2011) chooses debt to equity ratio and debt to total asset ratio to. Empirical methods in relation to firms' active capital structure decisions the main contribution of this paper is to develop a new general approach to study corporate financial decisions that would lead to better inference in a dynamic world specifically, we build and implement a dynamic (s, s) model of. The paper identifies the most important determinants of capital structure of 870 listed indian firms comprising both private sector companies and government companies for the period 2001–2010 ten independent variables and three dependent variables have been tested using regression analysis it has been concluded.
Are some of the very few papers on this topic 10 according to masulis (1988) “ one means of expanding on the previous evidence [on capital structure] is to study the determinants of leverage in an industry exhibiting extreme leverage choices some of the best examples of this situation are commercial banks [. This study is carried out after categorizing the selected firms into three categories based on two attributes, viz business revenue and asset size first, firms capital structure: evidence from european countries' working paper 1-17, university of durham, durham azhagaiah, r, and j premgeetha 2004 'a study on. This study attempts to examine the effect of capital structure on profitability of non -financial quoted firms in nigeria in the context of the country's ongoing economic reforms the rest of the paper contains four sections section 2 provides literature review section 3 dealt with research methods while section four presents the. This paper investigates the determinants of capital structure of german companies by the other hand there is also research done about the german market study again another study by antoniou, guney and paudyal (2002) conducted a research about capital structure in france, germany and the uk.