Empirical evidence on the relationship of capital structure and the value of the firm among Mexican public firms

Purpose: The purpose of this study is to find the relationship of capital structure decision with the performance of the firms in the developing market economies like Pakistan.Methodology: Pooled Ordinary Least Square regression was applied to 36 engineering sector firms in Pakistani market listed on the Karachi Stock Exchange (KSE) during the period 2003-2009.Findings: The results show that financial leverage measured by short term debt to total assets (STDTA) and total debt to total assets (TDTA) has a significantly negative relationship with the firm performance measured by Return on Assets (ROA), Gross Profit Margin (GM) and Tobin’s Q. The relationship between financial leverage and firm performance measured by the return on equity (ROE) is negative but insignificant. Asset size has an insignificant relationship with the firm performance measured by ROA and GM but negative and significant relationship exists with Tobin’s Q. Firms in the engineering sector of Pakistan are largely dependent on short term debt but debts are attached with strong covenants which affect the performance of the firm.Originality/Value: This is first paper to study an individual sector like engineering industry in Pakistan on the mentioned topic.

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Is There Any Relation between Intellectual Capital and the Capital Structure of a Company? The Case of Polish Listed Companies

e-Finanse ◽

10.1515/fiqf-2016-0126 ◽

2015 ◽

Vol 11 (4) ◽

pp. 23-33

Author(s):

Monika Bolek ◽

Katerina Lyroudi

Keyword(s):

Capital Structure ◽

Intellectual Capital ◽

Intangible Assets ◽

Stock Exchange ◽

Equity Capital ◽

Warsaw Stock Exchange ◽

Relationship Of ◽

The Relationship ◽

A Company ◽

The Capital Structure

Abstract This study investigates the relationship of the intellectual capital of a company (proxied by its intangible assets), with leverage and equity and capital structure. Our empirical results indicate that there is a negative relation between the intellectual capital (intangible assets) of a company and its leverage based on the Warsaw Stock Exchange main market and NewConnect alternative market. Moreover, the equity capital is found positively related to the level of intangibles in each of the two markets. These results support the thesis that intellectual capital (intangible assets) influences the capital structure of a company.

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THE EFFECT OF GREEN STRATEGY AND GREEN INVESTMENT TOWARD CARBON EMISSION DISCLOSURE

The International Journal of Business Review (The Jobs Review) ◽

10.17509/tjr.v1i2.13879 ◽

2018 ◽

Vol 1 (2) ◽

pp. 97-112

Author(s):

Zalida Afni ◽

Lindawati Gani ◽

Chaerul D Djakman ◽

Elvia Sauki

Keyword(s):

Private Sector ◽

Empirical Evidence ◽

Carbon Emissions ◽

The World ◽

Green Investment ◽

Green Strategy ◽

Relationship Of ◽

The Relationship ◽

Green Investments ◽

Private Sector Organization

This research aims to test the influence of the green strategy and green investment against disclosure of carbon emissions. Global warming leads to extreme climate change in various places around the world including in Indonesia. There is strong evidence that it is caused by human activity, mainly from burning fossil fuels so as to have an impact on the increasing greenhouse gases. One of the company's efforts in reducing the impact of carbon emissions is by disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. This research using a sample of companies listed on stock exchanges in the country which is included in the rate of carbon emissions in the world, namely Indonesia and German. This study uses data from the 2014-2016 period in the annual report and the corporate sustainability report. The results showed that there is a significant influence of the green strategy and green investment against disclosure of carbon emissions

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Testing the Efficiency of Capital Structure and Assets Structure in Bank

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2021/v21i230354 ◽

2021 ◽

pp. 105-112

Author(s):

Ahmad Roziq ◽

Ayang Marizca ◽

Alwan Sri Kustono

Keyword(s):

Data Collection ◽

Capital Structure ◽

Hypothesis Test ◽

Secondary Data ◽

Profit Sharing ◽

Islamic Banks ◽

Collection Method ◽

Independent Variable ◽

Relationship Of ◽

The Relationship

This study aims to examine and analyze the effect of capital and asset structure on the risk of financing and profitability of Islamic banks in Indonesia. This type of research is explanatory research, namely research that explains the relationship of the influence of the independent variable on the influence of the dependent variable through a hypothesis test using path analysis. The data used in this study is secondary data on capital structure, asset structure, risk, and profitability in Islamic banks for the 2014-2018 period. The data collection method used in this research is the documentation method. The results of the study conclude that capital structure has a significant effect on risk but does not have a significant effect on profitability, asset structure has no significant effect on risk and profitability and risk has a significant effect on profitability. The results of analysis and discussion can be advised the management of Islamic banks to improve the performance of Islamic banks, so the management of Islamic banks must be able to establish an efficient capital structure, namely by using temporary syirkah funds that use an efficient profit-sharing system and loans with the wadiah system.

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PENGARUH PROFITABILITAS TERHADAP NILAI PERUSAHAAN DENGAN STRUKTUR MODAL SEBAGAI VARIABEL PEMODERASI PADA PERUSAHAAN SEKTOR PERTANIAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v8i4.455 ◽

2019 ◽

Vol 8 (4) ◽

Author(s):

Sigit Cahyono ◽

Ni Ketut Surasni ◽

Hermanto Hermanto

Keyword(s):

Capital Structure ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Common Effect ◽

Analysis Technique ◽

Independent Variable ◽

Relationship Of ◽

The Relationship ◽

Observation Period

This research aims to analyze the effect profitability to firm value with capital structure as moderating variable in agriculture companies listed on the Indonesia Stock Exchange (IDX). The dependent variable used is firm value (PBV), the independent variable is profitability (ROA), and capital structure (DER) as a moderating variable. The sampling technique was purposive sampling so that the number of samples obtained was 9 companies, with an observation period of 2014-2017. This type of research is associative causal. The analysis technique used in this study is panel date regression (common effect modell) using eviews, with a significant level of 5 percent. Descriptive statistics were also included which included average, median, minimum, maximum, and std. deviation. The results of this study indicate that profitability has a positive and significant effect on firm value and, capital structure is weaken on the relationship of profitability to firm value. Capital structure is a quasi moderating where as the effect of capital structure to firm’s value and the effect of capital structure interaction to firm’s value is also significant.Keywords: Profitability, Capital Structure, Firm Value

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Capital Structure and Bank Performance: Empirical Evidence from Bangladesh

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v12i1.17014 ◽

2020 ◽

Vol 12 (1) ◽

pp. 161

Author(s):

Md. Ibrahim Molla

Keyword(s):

Capital Structure ◽

Positive Impact ◽

Stock Exchange ◽

Positive Influence ◽

Bank Performance ◽

Total Debt ◽

Relationship Of ◽

The Impact ◽

The Relationship

The paper empirically investigates the relationship between capital structure and the performance of listed banks in Bangladesh using panel data over the period of five years from 2014-2018. To estimate the association between leverage level and bank performance the Panel Corrected Standard Error (PCSE) model is used in this study and the findings indicate that long term debt has a positive influence on the performance of banks which is measured in terms of ROA and ROE. This implies that long term debts are associated with the higher performance of banks listed in Bangladesh. The regression results also reveal that the capital structure component of total debt has no statistically significant impact on ROA, ROE and EPS but it has a significant positive impact on the performance of banks measured by price earning ratio. Furthermore, this analysis finds no relationship of long term debt and total debt with the EPS. These findings lead to conclude that capital structure has a weak to no influence on the performance of listed banks in Bangladesh. This paper is the first research attempt that investigates the impact of capital structure on the performance of all banks listed on the Dhaka Stock Exchange in Bangladesh.

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