Download or read book The Determinants of Capital Structure in Ethiopian Small Scale Manufacturing Industry Firms written by Dereje Yohannis and published by . This book was released on 2019-12-19 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2019 in the subject Business economics - Investment and Finance, grade: 3.28, language: English, abstract: The purpose of the study is investigating the determinants of capital structure for Small Scale Manufacturing Firms (SSMFs) in Ethiopia. Hypotheses utilizing trade-off, pecking order and agency theories are empirically examined using a series of firm characteristics: size, tangibility, profitability, earning volatility, age and macroeconomic variable (GDP growth rate, inflation rate and interest rate). A structured record review was made to collect a panel data, which include 20 SSMFs year observations of 11 years over the period 1998 - 2008 E.C. The findings suggest that profitability, earning volatility, age, growth, GDP, inflation rate and interest rate variables are the most important determinants of capital structure of SSMFs in Ethiopia. The findings also reveal that the dominant capital structure theories (trade-off, pecking order, and agency theories) appear indeed to be valid for Ethiopian SSMFs' capital structure; in fact, trade-off theory best explains Ethiopian SSMFs' capital structure. All firm specific variables except Size, tangibility and growth variables seem to have an effect on the level of leverage in Ethiopian SSMFs.
Download or read book The determinants of capital structure of small industrial firms written by Wim Voordeckers and published by . This book was released on 1999 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determinants of Capital Structure written by Leshane Luscombe and published by . This book was released on 2009 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Capital Structures in the United States written by Benjamin M. Friedman and published by University of Chicago Press. This book was released on 2009-05-15 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: The research reported in this volume represents the second stage of a wide-ranging National Bureau of Economic Research effort to investigate "The Changing Role of Debt and Equity in Financing U.S. Capital Formation." The first group of studies sponsored under this project, which have been published individually and summarized in a 1982 volume bearing the same title (Friedman 1982), addressed several key issues relevant to corporate sector behavior along with such other aspects of the evolving financial underpinnings of U.S. capital formation as household saving incentives, international capital flows, and government debt management. In the project's second series of studies, presented at the National Bureau of Economic Research conference in January 1983 and published here for the first time along with commentaries from that conference, the central focus is the financial side of capital formation undertaken by the U.S. corporate business sector. At the same time, because corporations' securities must be held, a parallel focus is on the behavior of the markets that price these claims.
Download or read book Determinants of Capital Structure written by Bülent Köksal and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determinants of Capital Structure in Ethiopian Small Scale Manufacturing Industry Firms written by Dereje Yohannis and published by GRIN Verlag. This book was released on 2019-12-18 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2019 in the subject Business economics - Investment and Finance, grade: 3.28, , language: English, abstract: The purpose of the study is investigating the determinants of capital structure for Small Scale Manufacturing Firms (SSMFs) in Ethiopia. Hypotheses utilizing trade-off, pecking order and agency theories are empirically examined using a series of firm characteristics: size, tangibility, profitability, earning volatility, age and macroeconomic variable (GDP growth rate, inflation rate and interest rate). A structured record review was made to collect a panel data, which include 20 SSMFs year observations of 11 years over the period 1998 – 2008 E.C. The findings suggest that profitability, earning volatility, age, growth, GDP, inflation rate and interest rate variables are the most important determinants of capital structure of SSMFs in Ethiopia. The findings also reveal that the dominant capital structure theories (trade-off, pecking order, and agency theories) appear indeed to be valid for Ethiopian SSMFs’ capital structure; in fact, trade-off theory best explains Ethiopian SSMFs’ capital structure. All firm specific variables except Size, tangibility and growth variables seem to have an effect on the level of leverage in Ethiopian SSMFs.
Download or read book Colonnade 1957 written by Longwood College and published by Hassell Street Press. This book was released on 2021-09-10 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. To ensure a quality reading experience, this work has been proofread and republished using a format that seamlessly blends the original graphical elements with text in an easy-to-read typeface. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
Download or read book Common Determinants of the Firm s Capital Structure and Business Survival written by Evaldo Barbosa and published by . This book was released on 2012-05-16 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: While methodologically improving upon a previous work, this study seeks empirically to identify the determinants of financial leverage and survival of the very small firms. This is important because, although research in capital structure has been impressively extended since the early 2000s from the study of almost exclusively large firms to SMEs, specific treatment of the very small concerns seems to be necessary and lagging behind. Likewise, much has been done with respect to the determinants of small business exit rates, but with apparently excessive concentration in new firms. Conventional debt ratio analyses reaffirm previous findings or otherwise and throw light upon other not-previously studied relationships, by making use of a larger unbalanced panel data sample, new and unconventional model specifications and breaking down total gearing into its short-, medium- and long-term components. Conventional failure analyses identify many determinants of small businesses' hazard rates at the same time they do not confirm some findings that have been replicated many times in the related literature. Unconventional analyses, however, seem to be successful at unearthing relationships for determinants not confirmed by the conventional, either capital structure or survival, analyses. Out of the traditionally studied factors, only past growth is not confirmed as a determinant of small firm discontinuance. This book reports research results that are remarkable, mainly with respect to the determinants of small firm survival. Notwithstanding, it does not claim to be definitive scientific proof because of its methodological limitations. Instead, the best use to be made of it is that of a reference work to guide students in planning their investigations, analyzing their data and assessing their findings or otherwise. Another application for this book is that it can be viewed as a pilot study conducted to validate methodology before a very costly larger-scale survey takes place. Governmental bodies, trade associations and institutions involved in boosting small business development would be the targeted audience here. A third application for this book is related to the fact that it uncovers superlative behavior of a small subset of the population overlooked by studies using large financial databases. In this case the interested audiences would be practitioners and management undergraduate courses, which are nowadays specializing in many areas and, as a consequence, are in need of acquiring specialized knowledge. Factors empirically analyzed in this book include all those traditionally studied in the SMEs capital structure literature. These are size, asset structure, growth, business risk, profitability, firm age and industry. Factors either never or very rarely empirically studied are also analyzed. These are entrepreneur's risk tolerance, aversion to sharing control, competitive strategy and capital share concentration. Other contemplated factors are operational cycle, capital intensity, total factor productivity, economic conditions, financial constraints, creditworthiness, owner's age, owner's gender, among others. In many instances, more than one measure is used for a factor. Examples are sales variability and sales unpredictability for business risk and machinery/fixed assets ratio, automation degree and capital/labor ratio for capital intensity. For the capital structure analyses, asset composition is broken down into its components, namely, plant & equipment ratio, real state ratio and investments ratio. The OLS multiple regression model is the instrument of analysis chosen for the capital structure investigation. For the duration analysis, the Cox proportional hazard model is the choice. Weibull and Gompertz specifications are also used only for the sole purpose of comparison. All findings, but three, in the whole time-to-event analysis, are statistically significant at the 0.1% level.
Download or read book Determinants of Capital Structure in Small Privately Held Firms written by Nicos Michaelas and published by . This book was released on 1996 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Debt Capacity written by Gordon Donaldson and published by Beard Books. This book was released on 2000-07 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determinants of Capital Structure written by Mintesinot Adnew Somega and published by . This book was released on 2011-11 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Capital Structure written by Le Cao and published by . This book was released on 2011 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Capital Structure and Firm Performance written by Arvin Ghosh and published by Routledge. This book was released on 2017-07-05 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital structure theory is one of the most dynamic areas of finance and forms the basis for modern thinking on the capital structure of firms. Much controversy has resulted from comparisons of the theory of capital structure originally developed by Franco Modigliani and Merton Miller to real-world situations. Two competing theories have emerged over the years, the optimal capital structure theory and the pecking order theory.Arvin Ghosh begins with an overview of the controversies regarding capital structure theories, and then statistically tests both the optimal capital structure and pecking order theories. Using the binomial approach he analyzes the determinants of capital structure while discussing the role of market power in determining capital structure decisions. Ghosh probes the questions of new stock offerings and stockholders' returns, and analyzes capital structure and executive compensation. He then looks into debt financing ownership structure, and the controversal relationship between capital structure and firm profitability. Finally, he discusses the latest developments in the field of capital structure.A concise overview of a major issue in business economics and finance, this volume provides a fuller understanding of capital structure influence on the financial performance of firms, and will certainly stimulate further debate. While hundreds of scholarly articles have been written on the subject this is the first book to test competing theories against measurements of firms' performance and their underlying capital structure.
Download or read book Determinants of Capital Structure in Non Financial Companies written by Fabian Kuehnhausen and published by . This book was released on 2014 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we evaluate firm-, industry- and country-specific factors determining a firm's capital structure. The empirical validity of several capital structure theories has been ambiguous so far. We shed light on the main drivers of leverage and depict differences in industry and country characteristics.Using a short panel data set with a large cross-section, we are able to show that firm size, industry leverage, industry growth and tax shield positively affect leverage ratios, while profitability and liquidity have negative impacts. Moreover, our model is an improvement over Rajan and Zingales' (1995) four-factor core model in terms of explaining data variation. The results are robust against different panel estimators, decompositions and over time.
Download or read book Testing Static Trade off Against Pecking Order Models of Capital Structure written by Lakshmi Shyam-Sunder and published by . This book was released on 2023-07-18 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The COVID 19 Impact on Corporate Leverage and Financial Fragility written by Sharjil M. Haque and published by International Monetary Fund. This book was released on 2021-11-05 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is stronger for firms exposed to significant rollover risk, while firms whose businesses were most vulnerable to social distancing did not reduce leverage. We rationalize our evidence through a structural model of firm value that shows lower expected growth rate and higher volatility of cash flows following COVID-19 reduced optimal levels of corporate leverage. Model-implied optimal leverage indicates firms which did not de-lever became over-leveraged. We find default probability deteriorates most in large, over-leveraged firms and those that were stressed pre-COVID. Additional stress tests predict value of these firms will be less than one standard deviation away from default if cash flows decline by 20 percent.
Download or read book Corporate Capital Structure in Europe written by Julia Koralun-Bereźnicka and published by Taylor & Francis. This book was released on 2024-08-08 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a comprehensive examination of the factors affecting corporate capital structures across 12 European Union countries, focusing on the influence of country-specific, industry-specific and firm-size-related determinants. It provides a comprehensive review of various interpretations of the capital structure concept and offers a detailed characterisation of commonly employed metrics. Furthermore, it offers an overview of capital structure theories and attempts to classify the factors that shape the financial leverage of enterprises within the framework of these theories. Additionally, it draws readers’ attention to contemporary factors potentially affecting corporate financing decisions, such as Environmental, Social and Governance (ESG) considerations or technological advances and innovations in finance. It combines theoretical insights with empirical research to explore the direct and indirect impacts of these factors on companies’ financing patterns. Targeting a broad readership including students, Ph.D. candidates, researchers, academics and financial practitioners, the book offers a rich understanding of capital structure optimisation and its significance for enhancing company value. Through its coverage of various capital structure theories, determinants and the role of external and internal factors in capital structure decisions, the book is an essential resource for those interested in the complex nature of these influences within the European landscape. With the exception of Chapter 2, no part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Chapter 2 of this book is freely available as a downloadable Open Access PDF at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC-BY-NC-ND) 4.0 license. Any third party material in this book is not included in the OA Creative Commons license, unless indicated otherwise in a credit line to the material. Please direct any permissions enquiries to the original rightsholder.
