scholarly journals The Effects of Growth, Size and Capital Structure Decisions on Profitability in Istanbul Stock Exchange (ISE):2008-2017

2020 ◽  
Vol 8 (05) ◽  
pp. 1748-1760
Author(s):  
Selahattin KOC ◽  
Zekai ŞENOL
Keyword(s):  
Capital Structure ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Annual Data ◽  
Data Set ◽  
Istanbul Stock Exchange ◽  
Size Growth ◽  
The Moment ◽  
Firm Profit

The effect of firm size, growth and capital structure on firm profit rates has been searched by economists for several decades. The aim of this paper is to investigate the impacts of size, liquidity, growth and capital structure decisions on profitability in Stock Exchange Istanbul (BIST). For this aim, annual data of 114 manufacturing industry companies which are active at the moment in BIST. The financial data set covers the period 2005-2017. Results of the study using panel data analysis shows that while the ratios with regarding capital structure decisions negatively affect profitability, whereas size liquidity and growth positively affects profitability.

scholarly journals The impact of capital structure and certain firm specific variables on the value of the firm: Empirical evidence from Kuwait

2015 ◽  
Vol 13 (1) ◽  
pp. 1191-1200
Author(s):  
Ahmad Mohammad Obeid Gharaibeh ◽  
Adel Mohammed Sarea
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Influential Factor ◽  
Annual Reports ◽  
Growth Opportunities ◽  
Data Set ◽  
Explanatory Variables ◽  
Size Growth ◽  
One Year ◽  
The Impact

The main objective of this study is to empirically examine the impact of leverage and certain firm-characteristics that are believed to have significant effects on the decision to use debt and on the value of the firm. The sample is composed of 48 companies listed in the Kuwait Stock Exchange (KSE) representing four different sectors. The study uses actual and historical panel data set obtained from the published annual reports of individual firms in addition to the publications of KSE. The study was accomplished using 8 years of data with a total of 239 observations representing the study period 2006-2013. The study uses descriptive statistics, correlation, and multiple-regression analyses to examine the impact of explanatory variables on the value of the firm. The study findings lead to the conclusion that capital structure (leveraging) is the most influential factor on firm’s value. Business risk, previous year’s value (one-year lagged ROA), dividends payout ratio, size, growth opportunities and liquidity of the firm are found to have significant influence on the firm’s value in Model 1 (where ROA is used as a proxy for the value of the firm). In model 2 (i.e., where ROE is used as a proxy of the firm’s value), the findings reveal that capital structure (leveraging); firm’s size, growth opportunities and liquidity of the firm are significant influential of the firm’s value. The study is valuable to academicians, finance managers, policy makers and other stakeholders as it fills the gap of literature by providing up-to-date evidence of the impact of capital structure and other firm specific variables on the value of the firm in Kuwait.

Crisis Effects on the Capital Structure Determinants for Manufacturing Companies

2013 ◽  
pp. 225-240
Author(s):  
Osman Sahin
Keyword(s):  
Data Analysis ◽  
Capital Structure ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Hierarchy Theory ◽  
Manufacturing Companies ◽  
Crisis Period ◽  
Istanbul Stock Exchange ◽  
The Capital Structure

The purpose of the study is to investigate crisis effects on the capital structure determinants for manufacturing companies listed on the Istanbul Stock Exchange Market (ISE) in Turkey for the period 2005-2010. This period is divided into two parts: The period of 2005-2007 is used as pre-crisis period, and the period of 2008-2010 is used as a crisis period. The periods are compared to understand crisis effect on the capital structure determinants. The panel data analysis is used for this study. Short term, long term, and total debt ratios are used as a proxy for the analysis. The sample consists of 138 manufacturing companies in Turkey over the period of 2005-2010. As a result, manufacturing companies’ capital structure is usually determined in accordance with the financial hierarchy theory. During financial crisis, the effects of capital structure determinants deviate from expectations.

scholarly journals PENGARUH CURRENT RATIO, RETURN ON EQUITY DAN SALES GROWTH TERHADAP STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA (BEI) ( Studi Empiris Pada Perusahaan Manufaktur Industri Logam dan Mineral yang terdaftar di Bursa Efek Indonesia (BEI) Periode 2011-2015 )

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Sun Haji Aji
Keyword(s):  
Data Analysis ◽  
Capital Structure ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Sales Growth ◽  
Analysis Method ◽  
Current Ratio ◽  
Return On Equity ◽  
Equity Ratio

ABSTRACT"Effect of Current Ratio, Return on Equity, and Sales Growth Of Capital Structure (Empirical Study of Manufacturing Industry In Metals And Minerals Listed on the Indonesia Stock Exchange Period 2011-2015)"This study aims to determine the effect of the Current Ratio, Return on Equity, and Sales Growth on the Capital Structure of Manufacturing Industry Metal And Allied listed on the Indonesia Stock Exchange. The research sample was taken from 5 Vendor Manufacturing listed in Indonesia Stock Exchange (BEI) in the period 2011 to 2015. The data analysis method used in this research is the method of panel data analysis using SPSS 21.Keywords:Current Ratio (CR), Return on Equity (ROE), Sales Growth and Debt to Equity Ratio (DER)

scholarly journals STRUKTUR MODAL TERHADAP NILAI PERUSAHAAN

2008 ◽  
Vol 7 (1) ◽  
Author(s):  
Masdar Mas’ud
Keyword(s):  
Capital Structure ◽  
Financial Distress ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Company Value ◽  
Growth Opportunity ◽  
Tax Shields ◽  
Manufacturing Company ◽  
Size Growth ◽  
The Capital Structure

The study attempts to analyze the factors of capital structure determiner and its impact on company value. The research aims at examining and analyzing the effect of profitability, size, growth opportunity, asset structure, cost of financial distress, and tax shields effects as the capital structure determiners on the manufacturing companies registered at Indonesia Stock Exchange. The differences between the factors of capital structure determiners (consisting of profitability, size, growth opportunity, asset structure, cost of financial distress, and tax shields effects) and the value of manufacturing companie registered at Indonesia Stock Exchange. The sample includes 59 companies registered at Indonesia Stock Exchange the data analysis instrument employed was Structural Equation Modeling (SEM) and t-test. The results of the research indicate that the factors of capital structure determiners, which have significant effect on capital structures, are profitability, size, growth opportunity, asset structure and cost of financial distress. The exception may be tax shields effects, which do not give significant effect at all on capital structure. The latter becomes evident because the depreciation and amortization rates of the registered Indonesia manufacturing company do not seem significant to contribute to company cash flow so that it stands out of company debt proportion.The factors of capital structure determiners with significant effect on capital structures involve profitability, size, asset structure, and cost of financial distress and tax shields effects. Size and growth opportunity do not have significant effect on the capital structure because manufacturing companies consider financing their investment using equity financing to deal with little financial risk regardless the size of company. It shows that there is a similarity on these factors of capital structure determiner between manufacturing company registered at Indonesia Stock Exchange the insignificantly defferent determiner factors pertain to growth opportunity, asset structure and company value. Meanwhile, the difference also develops between the factors of capital structure determiner in the manufacturing company registered at Indonesia Stock Exchange. The significantly different determiner factors will be profitability, size, cost of financial distress; tax shields effects and capital structure.

scholarly journals O nível de concentração de capital influencia a estrutura de capital das empresas brasileiras?

2019 ◽  
Vol 12 (4) ◽  
pp. 785
Author(s):  
Samuel De Paiva Naves Mamede ◽  
Wilson Toshiro Nakamura ◽  
José Renato De Paula Souza Jardim ◽  
Graciela Dias Coelho Jones ◽  
Elaine Aparecida Maruyama Vieira Nakamura
Keyword(s):  
Capital Structure ◽  
Concentration Level ◽  
Panel Data Analysis ◽  
Annual Data ◽  
Positive Relation ◽  
Publicly Traded ◽  
Future Studies ◽  
Publicly Traded Companies ◽  
The Capital Structure

The purpose of the present research is to identify whether the capital structure of the Brazilian listed companies is influenced by the capital concentration level. The sample comprises 104 Brazilian publicly traded companies listed on the BM&FBOVESPA, totaling 1,258 observations for annual data in the period from January 1st, 2008 to December 31st, 2014. By using panel data analysis and taking into account the control variables identified as relevant in the literature, the main results show that (i) capital concentration has a positive relation with market indebtedness and with long-term net debt to market equity; (ii) the variables size, volatility, profitability and tangibility, highlighted in the theoretical archetype, evidence a significant influence on long-term debt to market equity and book equity, and (iii) there are no findings and/or inferences that net debt to EBITDA may bring implications for shareholders´ capital concentration. For future studies, suggestions are: i) to increase observations of Brazilian privately held companies; ii) to compare the results obtained with the capital structure of other countries, and iii) to highlight and relate other variables in the literature which are not addressed by the present research.

scholarly journals New evidences on determinants of capital structure from the Indian manufacturing industry

2016 ◽  
Vol 13 (3) ◽  
pp. 82-88 ◽  
Author(s):  
Pradeepta Sethi ◽  
Ranjit Tiwari
Keyword(s):  
Capital Structure ◽  
Manufacturing Industry ◽  
Order Theory ◽  
Manufacturing Firms ◽  
Indian Government ◽  
Pecking Order ◽  
Pecking Order Theory ◽  
Optimal Capital Structure ◽  
Financing Decisions ◽  
Size Growth

In the backdrop of Make in India push by Indian government the purpose of this study is to examine the determinants of capital structure towards a better understanding of financing decisions to be undertaken by the Indian manufacturing firms. The data for the analysis is drawn from COSPI manufacturing index of Centre for Monitoring Indian Economy (CMIE). Our sample is an unbalanced panel of 1077 firms over the period 2000-01 to 2012-13. We apply system-GMM to study different factors that affect the leverage decision of firms in India. The findings of the study reveals that the choice of optimal capital structure can be influenced by factors such as profitability, size, growth, tangibility, non-debt tax shields, uniqueness and signal. We also find the existence of both pecking order theory and static trade-off theory in the case of Indian manufacturing firms. The results thus obtained are robust across the different proxies of leverage

scholarly journals Does Capital Structure Affects Firms’ Performance in Ghana? Panel Data Analysis

2019 ◽  
Vol 8 (4) ◽  
pp. 131
Author(s):  
John MacCarthy ◽  
Helena Ahulu
Keyword(s):  
Panel Data ◽  
Capital Structure ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Equity Capital ◽  
Debt Capital ◽  
Tangible Assets ◽  
Ghana Stock Exchange

This paper examines the effect of capital structure on the firms’ performance. The study collected data from seventeen firms listed on the Ghana Stock Exchange from 2009 to 2018. A quantitative research technique is used to collect data to test two hypotheses. Panel data regression is employed to determine the effect of capital structure on firms’ performance. The study revealed that short-term debt and total debt accounted for 67% and 76.3% respectively of capital used to finance the operations for the period. Furthermore, the study revealed that there is significant and negative relationship between capital structures and firms’ performance. The study concludes that firms should minimise the use of debt capital and rather concentrate on equity capital to finance their operations. The study recommends that firms should increase sales and invest in tangible assets to maximise the firms’ performance. 

scholarly journals CORPORATE GOVERNANCE, CAPITAL STRUCTURE, AND CORPORATE INVESTMENT: AN EMPIRICAL STUDY ON PROPER MANUFACTURING INDUSTRY IN INDONESIA

2021 ◽  
Vol 19 (1) ◽  
pp. 130-140
Author(s):  
Gilda Maulina ◽  
◽  
Nila Firdausi Nuzula ◽  
Cacik Rut Damayanti ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Corporate Investment ◽  
Equation Modeling ◽  
Environmental Programs ◽  
Units Of Analysis ◽  
The Capital Structure

Investment is one of the most crucial decisions that a company must create to achieve higher financial performance and to maintain long-term sustainability. This study predicts that two significant factors determine corporate investment, i.e., the firms’ corporate governance and capital structure. The article also assumes that companies that are aware and engage in environmental programs would find it much easier to gain investors’. This study used 39 units of analysis of 13 manufacturers listed on the Indonesia Stock Exchange that received a good ranking in PROPER during the 2016-2018 period and analyzed with structural equation modeling (SEM). This study finds that corporate governance is negatively related to the capital structure but positively related to corporate investment. However, the capital structure does not affect corporate investment implying environmental performance’s significance in leading corporate governance and enhancing corporate investment. Further research can extend the observation period, use other sectors as the sample, use the different indicators in each variable, and develop the relationship between variables on a broader framework.

scholarly journals Impact of managerial ownership on capital structure: a survey of Turkish firms

2008 ◽  
Vol 5 (2) ◽  
pp. 8-14
Author(s):  
Özgür Arslan
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Emerging Market ◽  
Debt Maturity ◽  
Managerial Ownership ◽  
Insider Ownership ◽  
Istanbul Stock Exchange ◽  
Dividend Smoothing ◽  
The Relationship ◽  
Considerable Support

This paper investigates the relationship between insider ownership and capital structure decisions made by managers for an emerging market. Therefore, we survey managers of 103 firms listed in the Istanbul Stock Exchange (ISE). Our findings lend considerable support to our expectation that leverage, debt maturity and dividend issues reduce ability of managers to divert resources from value maximisation. However the same monitoring and disciplining tax is not observed for stock issues. Also, our findings document that managers of firms listed in the ISE do not opt to dividend smoothing policy. Finally, the results are in line with our expectation that, the more willing are the managers to reduce asymmetric information between them and shareholders, the higher their ownership level in firms.

scholarly journals Governança Corporativa Induz Melhor Desempenho e Inibe Alavancagem: Evidência da Indústria Brasileira de Petróleo & Gás

2015 ◽  
Vol 1 (2) ◽  
Author(s):  
Vládia Geane Moura Silva ◽  
Joséte Florencio dos Santos ◽  
Moisés Araújo Almeida
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Emerging Market ◽  
Panel Data Analysis ◽  
Oil Industry ◽  
Data Set ◽  
Governance Practices ◽  
Three Stage Least Squares ◽  
Oil Gas ◽  
The Relationship

Purpose. This study analyzes the oil industry, gas and biofuels in order to identify associations between corporate governance practices with capital structure, risk and performance.Methodology. These data were verified through 3SLS models (Three-Stage Least Squares). For this, we used a data set composed of 19 companies, for a panel data analysis in the period 2005-2009.Findings. The results suggest a negative association between leverage and corporate governance company level, supporting the substitution hypothesis, according to which the leverage works as a governance substitute. Also they did not reject the hypothesis that the greater the governance practices, greater market performances and accounting of these companies, as well as reduces the market risk.Limitations. The main limitation of this research is the sample size, 19 companies, with particular focus on an industry, reducing the generalizability of the results.Originality/Value. This study sought to contribute to the understanding of the relationship between corporate governance, capital structure, performance and risk; specifically for the oil, gas and biofuels in Brazil, an important and understudied emerging market.

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