scholarly journals A Comparative Analysis between Commercial Banks and Insurance Companies in Bangladesh on the basis of Capital Structure

2017 ◽  
Vol 7 (8) ◽  
pp. 01
Author(s):  
Md. Moniruzzaman
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Insurance Companies ◽  
Total Debt ◽  
Significant Difference ◽  
Equity Ratio ◽  
And Performance ◽  
The Capital Structure

<p>This research aims to compare the capital structure of Bangladeshi commercial banks and insurance companies. This research tries to identify how debt-equity mix influences firm performance in banks and insurance companies in Bangladesh. The annual financial statements of 10 commercial banks and 10 insurance Companies were used for this study which covers a period of five (5) years from 2011-2015. The study assesses the capital structure of the commercial banks and insurance companies measured by total debt to equity ratio (DER), total debt to total funds ratio and performance by ROE, ROA, and EPS. Descriptive statistics, t-test have been used to show the differences between commercial banks and insurance companies capital structure and performance. However this study concludes that there is no significant difference between Bank and insurance companies EPS&amp; ROE but there is a significant difference between Bank and insurance company’s D/A ratio, D/E ratio and ROA. We have tried to find out the significances of capital structure on depository and non-depository financial institutions from this study.</p>

The Relationship Between Capital Structure and Performance in Islamic Rural Bank (BPRS): Evidence Indonesia

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Rofiul Wahyudi ◽  
Annisa Fithria ◽  
Sartini Wardiwiyono
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Advantages And Disadvantages ◽  
Panel Data Regression ◽  
Data Regression ◽  
Equity Ratio ◽  
Relationship Capital ◽  
And Performance ◽  
The Relationship ◽  
The Capital Structure

The capital structure is important for financial institutions including Sharia Rural Bank (BPRS). However, BPRS has a problem that is the limited capital owned so that it affects performance. The main objective of this paper is to investigate the relationship capital structure and performance of the Islamic Rural Banks (BPRS) in Indonesia. The study using panel data regression to measure the capital structure on performance. The research sample used 164 BPRS that operate in 33 provinces from 2010 until 2017. The results show that capital structure affects DER (debt to equity ratio) and DAR (debt to asset ratio), but negatively affects ETA (equity to total Asset ratio). These findings indicate that there is an increase in the capital structure of the performance of the BPRS in Indonesia. Hence, bank managers must reach a trade-off between the advantages and disadvantages of creating liquidity, and consider the negative relationship between liquidity creation and bank performance when making decisions.

scholarly journals Capital Structure and Financial Performance of Manufacturing Companies in Indonesia

2021 ◽  
Vol 3 (2) ◽  
pp. 114-125
Author(s):  
Ni Luh Ira Suitri ◽  
Mohammad Agus Salim Monoarfa
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Analysis Method ◽  
Equity Ratio ◽  
The Capital Structure

This study aims to determine whether the Capital Structure affects the financial performances partially and simultaneouslly. The Capital Structure in this study is proxide by Debt to Asset Ratio (DAR) and Long Term Debt to Equity Ratio (LTDER), whereas the financial performance is proxide by Return On Asset (ROA). the type of data used in this study is secondary data obtained from the financial statements os plastic and packaging companies listed on the Indonesia Stock Exchange in 2012-2019. The analysis method uses multiple linier regression analysis. The result revealed that partially DAR had negative and significant effect on ROA, while LTDER had no significant effect on ROA. The result also shows that simultaneouslly DAR and LTDER have a significant effect on ROA.

scholarly journals THE EFFECT OF PROFITABILITY ON CAPITAL STRUCTURE IN THE MANUFACTURING COMPANIES SUBSECTOR METALS LISTED IN INDONESIA STOCK EXCHANGE (IDX) YEAR 2011-2013

2019 ◽  
Vol 3 (2) ◽  
pp. 51
Author(s):  
Amelia Fitriani I.P
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Total Sample ◽  
Significance Test ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Equity Ratio ◽  
The Capital Structure

This study aims to determine the effect of profitability on the capital structure of the Manufacturing Companies subsector Metals are Listed in Indonesia Stock Exchange in 2011-2013, in this study profitability is measured using the Return on Assets (ROA), and capital structure were measured using Debt to Equity Ratio (DER ). The method used is descriptive method verification. The data collection techniques used is a method of documentation. Data in the form of financial statements obtained from the official website of Indonesia Stock Exchange 2011-2013. With a total sample of 10 Metals Companies listed on the BEI for three periods of study in order to get 30 data observan. Statistical analysis used is simple linear regression analysis, which is preceded by a test for normality and linearity as a prerequisite regression test then testing the significance of regression (F test) and regression coefficient significance test (t test). Based on the results of data processing, the known value of ROA decreased, while DER increased. Based on the statistical test result that profitability does not affect the capital structure.    Keywords: Profitability, Capital Structure.

scholarly journals Determinants of capital structure in Nepalese commercial banks

2020 ◽  
Vol 1 (1) ◽  
pp. 50-70
Author(s):  
Lalit Prasad Timilsina
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Influencing Factor ◽  
Correlation Coefficients ◽  
Secondary Data ◽  
Annual Reports ◽  
Return On Assets ◽  
Total Debt ◽  
Specific Factors ◽  
The Capital Structure

This study examines the determinants of capital structure in Nepalese Commercial Banks. The study is based on secondary data of 16 commercial banks with 112 observations for the period 2011/12 to 2017/18. The total debt to total assets and total debt to total equity were selected as dependent variables while return on assets, bank size, assets tangibility, assets growth and liquidity are the independent variables. The data were collected from annual reports of concerned sample bank. The Pearson's correlation coefficients and regression models are estimated to test the significance and impact of bank specific factors on the capital structure of Nepalese commercial banks. The result shows that banks size and assets tangibility are positively correlated with total debt to total assets whereas return on assets, assets growth and liquidity are negatively correlated with total debt to total assets. Likewise return on assets, bank size, assets tangibility, assets growth and liquidity are negatively correlated with total debt to total equity. It indicates that higher assets growth, return on assets and liquidity lower would be the total debt to total assets and total debt to total equity. Likewise higher the bank size and assets tangibility higher would be the total debt to total assets. This study concludes that return on assets, bank size and assets tangibility are the most influencing factors and assets growth and liquidity are the least influencing factor affecting the capital structure of Nepalese commercial banks.

scholarly journals Company’s Characteristics and Capital Structure “An Empirical Study on Listed Insurance Companies in Jordan”

2016 ◽  
Vol 8 (2) ◽  
pp. 103
Author(s):  
Omar Al Singlawi ◽  
Mohammad Aladwan
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Financial Statements ◽  
Insurance Companies ◽  
Panel Regression ◽  
Pecking Order ◽  
Trade Off ◽  
Significant Negative Relationship ◽  
Single Regression ◽  
The Capital Structure

<p>This study examined the company’s characteristics that affect the capital structure of insurance companies in Jordan. The study has employed panel regression model in investigating the capital structure of insurance companies using financial statements data of 23 companies covering the period 2010-2014. The results showed that both the static trade-off and pecking order theories are important in explaining the capital structure of insurance companies in Jordan. Company’s characteristics: size, profitability, tangibility, growth and risk were statistically significant to capital structure. Based on multiple and single regression the results of the study showed a statistical significant relationship between characteristics of insurance companies and their capital structure. The results also revealed a significant negative relationship between capital structure and company’s size, profitability, growth and risk while tangibility was significantly positively correlated to capital structure.</p>

scholarly journals Analisis Faktor-Faktor Yang Mempengaruhi Struktur Modal Pada Perusahaan Makanan Dan Minuman Yang Terdaftar Di Bursa Efek Indonesia Pada Tahun 2008 -2015

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Anthony Ghozali Dan Ignatius Roni Setyawan
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Financial Statements ◽  
Least Square ◽  
Ordinary Least Square ◽  
Food And Beverage ◽  
Equity Ratio ◽  
Asset Growth ◽  
The Capital Structure

Capital structure is one of the most important things that every company should concern about. As alongwith economic issues that recently happened in this past years, such as crisis, inflation, etc, this study aims to find out about the factors that affect the capital structure in the food and beverage sectors listed in the Indonesia Stock Exchange (BEI) in the year of 2008-2015. The data sample of 8 companies is collected by using financial statements from each company that issued by Indonesia Stock Exchange.. This study use multiple regression with Ordinary Least Square (OLS) method to examine the effect of profitability (return on asset), firm size, asset growth and liquidity on the capital structure (debt-to-equity ratio).  The conclusion of this study indicate that profitability, firm size, asset growth and liquidity affect the capital structure simultaneously, meanwhile partially, profitability affect the capital structure while firm size, asset growth and liquidity not affect the capital structure.

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 conceptual review of capital structure under risk-based capital regime, risk profile of insurer’s and performance

2021 ◽  
Vol 8 (1) ◽  
pp. 15-27
Author(s):  
Sarfaraz Ahmed Bhutto ◽  
Ikhtiar Ali Ghumro ◽  
Zulfiqar Ali Rajper ◽  
Saifullah Shaikh
Keyword(s):  
Capital Structure ◽  
Conceptual Framework ◽  
Risk Profile ◽  
Future Research ◽  
Risk Propensity ◽  
Holistic Understanding ◽  
Equity Ratio ◽  
Insurance Firms ◽  
And Performance ◽  
Corporate Risk

This paper evaluates capital structure under risk-based capital regime from the perspective of insurance firms and its performance. It also evaluates the moderating effect of insurer’s risk profile on capital-performance relationship. The authors aim to reveal ambiguities, gaps and omissions in the literature and to sketch avenues for future research. A conceptual framework for capital structure under risk-based capital era and its application is suggested focusing on equity, technical provision and required risk propensity for maximizing profit and wealth for all stakeholders. The research reviews that capital structure of insurers differs from non-insurance firms as such risk-based capital regulation must not only focus on the various types of risk but also recognized these differences. It is shown that insurers’ capital structure contains equity and technical provisions which comprises accruals and creditors, payable claims and insurance funds as an alternative of equity and financial debt as it is with conventional non insurance firms. This study thus stressed that for capital structure to best explain performance of insurers, it must be measured by equity ratio and technical provision ratio in place of debt ratio and corporate risk profile (quantitative and qualitative) must enter its sequence of performance relational analysis and effectiveness equations. We stressed further that only with the proposed conceptual framework would a holistic understanding of insurer’s capital structure be achieved while the observed contradictory and inconclusive empirical findings on capital structure and firm performance could be resolved.

scholarly journals Capital Structure and Firm Performance: Evidence from Malaysian Public Listed Plantation Companies

2021 ◽  
Vol 5 (1) ◽  
pp. 123-142
Author(s):  
Kim Foong Jee ◽  
Jia En Joanne Ngui ◽  
Pei Pei Jessica Poh ◽  
Wai Loon Chan ◽  
Yet Siang Wong
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Significant Relationship ◽  
Firm Growth ◽  
Control Variable ◽  
Short Term ◽  
Total Debt ◽  
And Performance ◽  
The Impact

This paper examines the relationship between capital structure and performance of firms. The study is confined to plantation sector companies in Malaysia and is based on a sample of 39 firms which listed in Bursa Malaysia for the period from 2009 to 2019. This study uses two performance measures which are ROA and ROE as the dependent variable. Besides, the capital structure measures are the short-term debt, long-term debt, total debt and firm growth, which as the independent variables. Size will be the control variable in this study. Moreover, a fixed-effect panel regression analysis has been used to analyse the impact of capital structure on firm performance. The results indicate that firm performance, which is in term of ROA, have an insignificant relationship with short-term debt (STD) and long-term debt (LTD). For the total debt (TD) and growth, there is a significant relationship with ROA. However, for the performance measured by ROE, it has an insignificant relationship with short-term debt (STD), long-term debt (LTD) and total debt (TD). Furthermore, there is a significant relationship between the growth and the performance firms from plantation sector in Malaysia.

scholarly journals MACROECONOMIC VARIABLES AND CAPITAL STRUCTURE: PUBLIC FINANCE AND INSURANCE IN LATIN AMERICA AND ASIA

2021 ◽  
Vol 9 (2) ◽  
pp. 133-142
Author(s):  
Caio Augusto Franco Lucas ◽  
Rafael Martins Noriller ◽  
Rosemar José Hall ◽  
Maria Aparecida Farias de Souza Nogueira ◽  
Ducineli Regis Botelho
Keyword(s):  
Public Finance ◽  
Latin America ◽  
Exchange Rate ◽  
Interest Rate ◽  
Capital Structure ◽  
Insurance Companies ◽  
Panel Analysis ◽  
Macroeconomic Variables ◽  
The Relationship ◽  
The Capital Structure

This article analyzes the relationship between macroeconomic variables and the capital structure of public finance and insurance companies in Latin America and Asia. The variables used were: Gross Domestic Product (GDP), Exchange Rate (ER), Interest Rate (%Δ IR), and Capital Structure (CS). Data were analyzed annually from 2010 to 2018 by static panel analysis and multiple regression using the Newey-West estimator. Interest rate and exchange rate were negatively correlated with CS. However, GDP was not significantly correlated with CS at 10% probability. It is concluded that macroeconomics interferes with the capital structure of financial institutions in Latin America and Asia.

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