The impact of firm-specific determinants, external factors and voluntary disclosure on capital structure: An empirical analysis of Islamic banks in Yemen

2022 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Eissa A. Al Homaidi ◽  
Mosab Tabash ◽  
Borhan Omar Ahmed Al dalaien ◽  
Amgad S.D. Khaled ◽  
Fatehi Almugari
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Voluntary Disclosure ◽  
External Factors ◽  
Islamic Banks ◽  
The Impact

Capital Structure and Earnings per Share: An Empirical Analysis of Indian Corporate Sector

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Harvinder Singh Mand ◽  
Manjit Singh
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Corporate Sector ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

This paper intends to measure the impact of capital structure on EPS (earnings per share) in Indian corporate sector. Fifteen control variables along with capital structure have been selected to know their impact on EPS. Panel data regression has been applied to establish the relationship among dependent and independent variables. It is found from the empirical analysis that the relation of capital structure with EPS has been statistically insignificant in Indian corporate sector among all specific industries except telecommunication industry. The results are consistent with Modigliani-Miller approach.

scholarly journals Influence of Capital Structure on Corporate Performance of Listed Firm in PSX: Role of External Factors

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Debt Financing ◽  
External Factors ◽  
Least Square ◽  
Total Debt ◽  
Integral Role ◽  
Equity Ratio ◽  
The Impact

Purpose: A company’s capital structure is a blend of its equity and debt financing and is considered a significant factor in the valuation of any firm. The decisions related to capital structure formation play an integral role for the firms, therefore; this research tends to explore the factors of capital structure and their impact on firm performance. For this purpose, financial data for different listed companies in PSX has been gathered, and dividends and taxes are used as firm external factors.  Design/Methodology/Approach: To examine the impact, the panel data has been used for the period 2016-2020 and panel least square has been applied. Findings: The findings suggest that among the variables current ratio, dividends, taxation, total debt to total equity ratio, and the firm size are statistically significant to profitability. The study also concludes that dividends and tax have a greater impact on capital structure and firm performance.   Implications/Originality/Value: Managers and owners of the firms must make sure that their profits are used for future investments rather than payment of debts to avoid bankruptcy.  

scholarly journals Dampak Faktor Eksternal dan Faktor Internal terhadap Perkembangan Bank Umum Syariah di Indonesia

2020 ◽  
Vol 1 (1) ◽  
pp. 97-108
Author(s):  
Luthfiah Nurazlina ◽  
Hasbi Assidiki Mauluddi
Keyword(s):  
Negative Impact ◽  
External Factors ◽  
Islamic Banks ◽  
Internal Factors ◽  
Simultaneous Test ◽  
Panel Data Regression ◽  
Data Regression ◽  
Simultaneous Testing ◽  
Significant Negative Impact ◽  
The Impact

The goal of this study was to determine the impact to which external factors such as GDP growth, inflation and BI interest rate and internal factors such as CAR, FDR and NPF have had an influence on the development of Islamic Banks in Indonesia that represented by the growth of total assets Islamic banks in Indonesia from 2015-2019. This research used a quantitative approach and the data would be analyzed using multiple regression test through panel data regression with partial test and simultaneous test provided by Eviews 10. Considering the results of the simultaneous testing, the study suggests that all variables had an impact on the development of the Islamic Bank. As for the partial test, from the external factors only the BI rate which gives a significant negative impact on the development of Islamic banks and from internal factors there are NPF and FDR which give significant negative impact. It was concluded that GDP, Inflation, and CAR did not affect the development of Islamic Banks in Indonesia.

scholarly journals The Impact of Capital Structure on Islamic Banks Performance: Evidence from Pakistan

2015 ◽  
Vol 1 (1) ◽  
pp. 79-90
Author(s):  
ATTA ULLAH ◽  
MUHAMMAD ILYAS ◽  
IHTESHAM KHAN ◽  
MUHAMMAD TAHIR KHAN
Keyword(s):  
Capital Structure ◽  
Islamic Banks ◽  
The Impact

This study investigate the impact of capital structure on the Islamic banks performance during 2008-2013. Selected a sample of 5 Islamic banks on the basis of availability of data. From the findings of the study demonstrate that the impact of capital structure and size is positive and significant on Islamic banks performance. However, Assets Growth is negatively and statistically non-significantly associated with banks performance.

scholarly journals Capital structure and firm performance in emerging economies: An empirical analysis of Sri Lankan firms

2011 ◽  
Vol 8 (4) ◽  
pp. 253-263 ◽  
Author(s):  
Athula Manawaduge ◽  
Anura De Zoysa ◽  
Khorshed Chowdhury ◽  
Anil Chandarakumara
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Empirical Analysis ◽  
Emerging Market ◽  
Negative Relationship ◽  
Sri Lankan ◽  
Short Term ◽  
Corporate Managers ◽  
Debt Capital ◽  
The Impact

This paper offers an empirical analysis of the impact of capital structure on firm performance in the context of an emerging market—Sri Lanka. The study applies both pooled and panel data regression models for a sample of 155 Sri Lankan-listed firms. The results demonstrate that most of the Sri Lankan firms finance their operations with short-term debt capital as against the long-term debt capital and provide strong evidence that the firm performance is negatively affected by the use of debt capital. The study also finds a significant negative relationship between tangibility and performance indicating inefficient utilization of non-current assets. The negative performance implications associated with over-utilization of short-term debts and the under-utilization non-current assets provide corporate managers with useful policy directions.

scholarly journals Ambiguity and the Tradeoff Theory of Capital Structure

2021 ◽  
Author(s):  
Yehuda Izhakian ◽  
David Yermack ◽  
Jaime F. Zender
Keyword(s):  
Capital Structure ◽  
Empirical Analysis ◽  
Theory Model ◽  
Knightian Uncertainty ◽  
Risk Averse ◽  
The Impact ◽  
The Capital Structure

We examine the impact of ambiguity, or Knightian uncertainty, on the capital structure decision, using a static tradeoff theory model in which agents are both ambiguity and risk averse. The model confirms the well-known result that greater risk—the uncertainty over outcomes—leads firms to decrease leverage. Conversely, the model indicates that greater ambiguity—the uncertainty over the probabilities associated with the outcomes—leads firms to increase leverage. Using a theoretically based measure of ambiguity, our empirical analysis presents evidence consistent with these notions, showing that ambiguity has an important and distinct impact on capital structure. This paper was accepted by Gustavo Manso, finance.

scholarly journals Impact of corporate governance on voluntary disclosure in Chinese listed companies

2007 ◽  
Vol 5 (2) ◽  
pp. 360-366 ◽  
Author(s):  
Hongxia Li ◽  
Ainian Qi
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Voluntary Disclosure ◽  
Stock Options ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
High Level ◽  
The Impact

This study examines the impact of corporate governance on voluntary disclosure in 100 non-financial Chinese listed firms for the period 2003-2005. There are two main findings. (1) Firms with high Managerial ownership have high level of voluntary disclosure. If a firm has a high managerial ownership, managers are much more concerned about the benefit of shareholders and stock options will have incentives to contribute the firm. Thus, a capital structure with high managerial ownership decreases agency costs and increases the voluntary disclosure. (2) The significant correlation is identified ownership concentration with the voluntary disclosure. This is because the largest shareholders have a strong interest in firm performance and therefore a high ability to increase voluntary disclosure. Our empirical results further illustrate that big firms have inclination of voluntary disclosure through stock market and the exogenous mechanism between them is exposed

scholarly journals CAPITAL STRUCTURE AND LIQUIDITY AS MEASURES OF EFFICIENCY: THE CASE OF ISLAMIC BANKS

2020 ◽  
pp. 23-29
Author(s):  
Francisca M. Beer PhD ◽  
Adeeb S. Hattar DBA
Keyword(s):  
Capital Structure ◽  
Financial Institutions ◽  
Financial Crises ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Adequate Amount ◽  
Negative Impacts ◽  
The Impact ◽  
The Capital Structure

The main objective of this paper is to improve our understanding of the capital structure and liquidity position of Islamic banks. For these institutions, an adequate amount of liquid assets and an adequate amount of capital are essential to stay solvent and avoid bankruptcy. Financial institutions’ amounts of capital and liquid assets have also been identified as valuable shields during financial crises. Unlike some of their Western counterparts, most Islamic banks have been able to circumvent the negative impacts of the 2008 crisis. Our paper reviews the recent and relevant publications about the impact of the capital structure and the liquidity on financial institutions efficiency. It focuses on the Islamic banking system which has grown significantly.

scholarly journals Empirical Analysis of Structural Income Changes in Commercial Banks: A Case of Pakistan

2018 ◽  
Vol 7 (1) ◽  
pp. 33-59
Author(s):  
Ramla Sadiq ◽  
Tahseen Mohsan Khan ◽  
Noman Arshed
Keyword(s):  
Empirical Analysis ◽  
Commercial Banks ◽  
Bank Performance ◽  
Developing Economy ◽  
Islamic Banks ◽  
Linear Approach ◽  
Gross Income ◽  
Conventional Banks ◽  
The Impact ◽  
Conventional And Islamic Banks

The primary purpose of this study was to conduct an exploratory and explanatory analysis to determine the impact of structural income on performance of the all commercial banks in Pakistan from 2008 to 2015. It aimed to establish the theory on dual impact of income diversification and ownership on bank performance in a developing economy. This population was divided into two categories - ownership mode characterized into conventional and Islamic banks and category mode characterized into five proportions of non-markup and mark up income structures. The divisions were analyzed on the basis of change in assets and equity and gross income, using a non-linear approach. This approach ensured robustness of analysis and clearer outcomes regarding strategic approaches in this sector. Ownership mode finding suggested conventional banks tilt towards non-markup income significantly for asset and gross income base increase and Islamic banks insignificantly towards markup income. Our findings also showed that conventional banks lead Islamic banks, and banks with non-markup income between 30%-40% lead other bank categories in terms of managing profitability. Islamic banks are ahead of conventional banks, and category1 banks with non-markup income above 50% are ahead of all other categories in terms of utilization of funds.

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