2002 proceedings of the midwest business economics association 127 empirical analysis of dynamic capital structure: pecking order vs trade off. The objective of this paper is to examine the capital structure of the indian firms the investigation has been performed using panel data procedure for a sample of 504 indian companies listed on any stock exchange of india during 1994-95 2003-04. This paper examines the dynamic properties of capital structure in a state-space framework a system of stochastic differential equations is used to specify the dynamics for a firm's debt-to-equity ratio and the determinants of capital structure the framework addresses statistical issues such as. Determinants of capital structure (an empirical evidence, us) rashid naim nasimi t proportion of funds from various sources used in a assessing the factors. The capital structure decision of a firm is very paramount to its successful operation the objective of the study was to analyse the impact of capital structure on firm performance in nigeria.
An empirical analysis of capital structure on firms' performance in nigeria taiwo adewale muritala department of economics and financial studies, fountain university osogbo, osun state, nigeria. 19 aleksandra szymańska, stijn van puyvelde, marc jegers, capital structure of social purpose companies - a panel data analysis, journal of sustainable finance & investment, 2015, 5, 4, 234crossref. Empirical studies use these determinants of the capital structure, assuming that if a firm has more advantages of debt, it is also more likely to issue debt and vice versa this is contradictory to the static trade-off model.
The relationship between capital structure and firm value has been the subject of considerable debate throughout the literature, debate has centered on whether there is an optimal capital structure for an individual firm or whether the proportion of debt usage is irrelevant to the individual firm's value. An analysis of optimal farm capital structure wesley n musser, fred c white, and john c mckissick use of debt in financing agricultural firms is an weak theoretical framework. 1 the objective of this paper is to empirically analyze, for the first time in the literature, whether human capital costs are indeed an important determinant of the capital structure of firms as. The paper performs empirical analysis of capital structure of banks and their borrowers for a sample of financial and nonfinancial companies around the world we find - positive effect of a. Empirical tests and results on capital structure and average employee pay in this section, we present results on the effect of leverage on average employee pay in the multivariate analysis, we start with ols regressions.
The effect of capital structure on profitability: an empirical analysis of listed firms in iraq dr ayad shaker sultan 1 and dr mustafa hassan mohammad adam 2. Capital structure theory is one of the most bewildering issues in the corporate finance literature capital structure theories suggest various factors that affect firm to maintain a target capital structure in order to maximize firm value, by minimizing the costs of prevailing market imperfections. The capital structure decision of a firm is very paramount to its successful operation the objective of the study was to analyse the impact of capital structure on firm performance in nigeria from 2003 to 2012.
Read the effect of capital structure on profitability: an empirical analysis of listed firms in ghana, the journal of risk finance on deepdyve, the largest online rental service for scholarly research with thousands of academic publications available at your fingertips. An empirical analysis of capital structure on performance of firms in the petroleum industry in nigeria oladeji, tolulope, ikpefan, ao and olokoyo, fo. An empirical analysis of capital structure decisions in malaysian 67 j sustain sci manage volume 10 (2) 2015: 65-73 framework of perfect markets and associated.
Capital structure is still a famous area among finance researches (gill et al, 2011) it is widely reported that in the static trade-off theory of capital structure, a more profitable firm is predicted. The effect of capital structure on profitability: an empirical analysis of listed firms in ghana the risk management of everything the impact of capital structure on the performance of microfinance institutions. Our analysis provides empirical support for the theoretical prediction that labor costs play an important role in limiting the use of debt in corporate capital structures 1. Salawu (2007) carried out an empirical analysis of the capital structure of selected quoted companies in nigeria between 1990 and 2004using panel data analysis the author found that leverage is negatively related to profitability.