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.

The impact of co-structure of capital, profitability and corporate growth opportunities on stock exchange in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Teddy Chandra ◽  
Achmad Tavip Junaedi ◽  
Evelyn Wijaya ◽  
Martha Ng
Keyword(s):  
Capital Structure ◽  
Structural Equation ◽  
Stock Exchange ◽  
Reciprocal Relationship ◽  
Growth Opportunities ◽  
Content Type ◽  
Reciprocal Influence ◽  
Growth Opportunity ◽  
The Impact ◽  
The Capital Structure

PurposeThe purpose of this paper is (1) to determine the factors that significantly influence the capital structure, (2) to determine the factors that significantly influence profitability, (3) to find the factors that significantly influence growth opportunities, (4) to find reciprocal influence between capital structure and profitability and (5) to find reciprocal influence between capital structure and growth opportunity.Design/methodology/approachThe population of this research is a manufacturing company listed on the Indonesia Stock Exchange during the period of 2010–2016. The number registered in the manufacturing sector is 144 companies. The sampling technique applied is purposive sampling. The fulfillment criteria are companies that have been approved before 2010. Another criterion is that the company is not delisting during the observation period. From that total of population, companies that meet the requirements are 117 companies. This observation was conducted for seven years since 2010–2016, so the center of the analysis of this research was a total of 819. The inferential statistics method used to analyze the research data is generalized structural component analysis (GSCA).FindingsThe results of this study indicate that (1) the factors that influence the capital structure include effective tax rate, financial flexibility, growth, uniqueness, asset Utilization, firm size and tangibility; (2) factors that affect profitability include liquidity, growth, firm age, uniqueness, tangibility, volatility, advertising and asset turnover; (3) growth opportunity have a negative and significant influence on capital structure. This means an increase in growth opportunity can be defined as an increase in depreciation that will not be used as collateral for managers to increase debt. This increase in debt will have an impact on reducing growth opportunities; (4) profitability and capital structure have a two-way causality relationship, which means they influence each other and (5) capital structure and growth opportunities have a negative reciprocal relationship.Originality/valueThe authenticity of the study is implied in the following explanation: The authors try to examine the reciprocal effect of capital structure on profitability and capital structure on growth opportunities and the factors that influence these two endogenous variables that have never been done by previous researchers. This research is motivated by research conducted by (Chathoth and Olsen, 2007; Jian-Shen Chen et al., 2009; Yang et al., 2010) using the structural equation model (SEM). However, this study uses GSCA as a method of research analysis.

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 STRUKTUR MODAL PERUSAHAAN-PERUSAHAAN NON KEUANGAN YANG TELAH GO PUBLIC DI BURSA EFEK INDONESIA BERDASARKAN TRADE OFF THEORY

2015 ◽  
pp. 1-13
Author(s):  
Donalson Silalahi
Keyword(s):  
Capital Structure ◽  
Empirical Evidence ◽  
Firm Growth ◽  
Stock Exchange ◽  
Growth Opportunities ◽  
Financial Firms ◽  
Trade Offs ◽  
The Cost ◽  
The Impact ◽  
The Capital Structure

This study aims, First, to obtain the empirical evidence about the capital structure of non-financial firms in Indonesia Stock Exchange. Second, to obtain the empirical evidence about the impact of capital structure on the value of non-financial firms in Indonesia Stock Exchange. Third, to obtain the empirical evidence about the impact of profitability, size of the firm, growth opportunity, the structure of assets, and the cost of bankruptcy to capital structure of non-financial firms in Indonesia Stock Exchange. To achieve these objectives, conducted research on companies listed on the Indonesia Stock Exchange. Research conducted on 163 companies with the observation period in 2011. All the required data obtained from the Indonesian Capital Market Directory. Furthermore, to explain the determinants of capital structure of the firm to used the t and F test with alpha 10 percent. Based on the results of the study, the conclusions as follows: First, the capital structure of the firm has a negative and significant effect on the value of the firm. Second, there is no optimal capital structure on a non-financial corporations. Third, the size of the firm, the structure of assets, and the cost of bankruptcy have positive and significant effect on the capital structure of the firm. Fourth, profitability and the growth opportunities of the firm does not significantly influence to the capital structure. Fifth, variations in the profitability, size of the firm, growth opportunities, the structure of assets, and the cost of bankruptcy are able to explain the variations of capital structure 10,2 percent. Sixth, the coefficient towards research results influence the profitability and bankruptcy costs the company is not in accordance with the trade-offs theory.

scholarly journals IMPACT OF DIVIDEND PAYOUT ON THE FIRM VALUE: A STUDY OF FIRMS LISTED ON NATIONAL STOCK EXCHANGE

2020 ◽  
pp. 14-19
Author(s):  
Dr.Chinnaiah.P.M
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Market Risk ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Wealth Maximization ◽  
Size Growth ◽  
Prime Objective ◽  
The Impact ◽  
Pe Ratio

Maximization of firm value or shareholders wealth maximization is the prime objective of a firm. As the dividend payout decision is one of the important decisions, its impact on the firm value has been widely studied and researched topic in the area of corporate finance. In the present study the impact of dividend payout on the value of the firm has been examined on the sample of Nifty-100 index firms. Along with the Dividend Payout(DPR), Current year’s profit(CPR), Size(SIZE), Leverage(LEV), Growth Opportunities(GWOP), Market risk(Beta), Price-Earnings(PE) ratio and Age(AGE) have been considered in the model as independent variables. The result shows that, dividend payout positively related but not significantly influence on the value of the firm. Whereas, The Current year’s profit (CPR), Size (SIZE), Growth Opportunities (GWOP) and Price-Earnings (PE) are the variables significantly influence on the value of the firm. KEYWORDS: Dividend payout, value of the firm, shareholders, National Stock Exchange, market risk.

scholarly journals Faktor-Faktor Yang Mempengaruhi Struktur Modal Pada Perusahaan Real Estate Dan Property Yang Terdaftar Di Bursa Efek Indonesia (BEI)

2018 ◽  
Author(s):  
Syska Sulistyowatie
Keyword(s):  
Growth Rate ◽  
Real Estate ◽  
Capital Structure ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Growth Opportunities ◽  
Current Ratio ◽  
Size Growth ◽  
Equity Ratio ◽  
The Capital Structure

This empirical study was aimed to determine the effect of Asset Structure, Profitability (ROA), Liquidity (Current Ratio), Company Size, Growth Rate, Growth Opportunities, Managerial Ownership, and Business Risk on Capital Structure of Real Estate and Property Company listed on the Indonesia Stock Exchange (BEI).Based on the results of data analysis, hypothesis testing indicated that all of the variables including Asset Structure, Profitability (ROA), Liquidity (Current Ratio), Company Size, Growth Rate, Growth Opportunities, Managerial Ownership, and Business Risk simultaneously influenced the Capital Structure of Real Estate and Property Company listed on the Indonesia Stock Exchange (BEI) with p-value of F test 0.000. The test result partially showed that asset structure variables, firm size, and growth opportunities gave positive and significant effect on the Capital Structure (Debt to Equity Ratio), Variable Profitability (ROA), Liquidity (Current Ratio), Growth Rate, Managerial Ownership and Risk Business did not affect the Capital Structure (Debt to Equity Ratio). Based on the coefficient determination testing, it can be seen that the proportion of all variables contribution on Capital Structure was 8.9 %.

scholarly journals Pengaruh Struktur Modal dan Keberadaan Komite Pengawas Manajemen Terhadap Kebijakan Dividen (Studi Empiris Pada Perusahaan Food and Beverage Di Indonesia Tahun 2014-2016 Yang Terdaftar di BEI)

2018 ◽  
Vol 7 (2) ◽  
pp. 78
Author(s):  
Dinalestari Purbawati ◽  
Rodhiyah Rodhiyah
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Annual Reports ◽  
Management Committee ◽  
Food And Beverage ◽  
Oversight Committee ◽  
The Impact ◽  
Risk Management Committee

This study examined the impact between capital structure and existence of an oversight committee to dividend policy. The oversight committee such as risk management committee, nominations and remuneration committee. Data was collected from the annual reports food and beverage companies listed on the Indonesian Stock Exchange (BEI) the period 2014, 2015 and 2016. Analysis tools used multiple regression. The results showed that the variable capital structure and risk management committee has a significant effect on dividend policy. The simultan test showed that capital structure and oversight committee has a significant effect on dividend policy.Studi ini meneliti dampak antara struktur modal dan keberadaan komite pengawasan terhadap kebijakan dividen. Komite pengawasan seperti komite manajemen risiko, komite nominasi dan remunerasi. Data dikumpulkan dari laporan tahunan perusahaan makanan dan minuman yang terdaftar di Bursa Efek Indonesia ( BEI) periode 2014, 2015 dan 2016. Alat analisis menggunakan regresi berganda. Hasil penelitian menunjukkan bahwa variabel struktur modal dan komite manajemen risiko memiliki pengaruh signifikan terhadap kebijakan dividen. Uji simultan menunjukkan bahwa struktur modal dan komite pengawasan memiliki pengaruh signifikan terhadap kebijakan dividen.

Good Corporate Governance, Profitabilitas, Ukuran Perusahaan dan Struktur Modal

2017 ◽  
Vol 9 (1) ◽  
pp. 1-17
Author(s):  
Hesty Juni Tambuati Subing
Keyword(s):  
Capital Structure ◽  
Board Of Directors ◽  
Firm Size ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Financial Reports ◽  
Basic Industry ◽  
The Capital Structure

The purpose of this research is to know about the effect of these factors Corporate Governane proxy by Institutional Ownership and Number of Board of Directors, Firm Size, and Return On Asset in basic industry and chemistry towards capital structure, and also to determine which of those factors having powerful effect to the capital structure. This research is using secondary data, such as the financial reports, annual reports and other related information of basic industry and chemistry listed in Indonesian Stock Exchange which sample were taken from 45 companies for the period of 2013 to 2014, and the choosing of these samples was based on the purposive sampling method. Panel data is used to test the effect of Institutional Ownership, Board of Directors, Return on Asset and Firm Size among as independent variables, in regard to capital structure as dependent variables. The result shows that only Return On Asset have significant effect to the Capital Structure in the basic industry and chemistry. Meanwhile Institutional Ownership, Board of Directors and Firm Size have no effect to the Capital Structure in the basic industry and chemistry. Keywords: Institutional Ownership, Board of Directors, Return On Asset, Firm Size, Capital Structure

scholarly journals Empirical Investigation of Symmetric and Asymmetric Target Adjustment Models: Capital Structure of Non-Financial Firms in Jordan

2017 ◽  
Vol 9 (3) ◽  
pp. 133 ◽  
Author(s):  
Bashar K. Abu Khalaf
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Interaction Model ◽  
Firm Characteristics ◽  
Leverage Ratio ◽  
Financial Firms ◽  
Large Size ◽  
Amman Stock Exchange ◽  
Target Leverage ◽  
The Impact

The different capital structure theories propose the possible asymmetric behavior of capital structure. Thus, this paper empirically investigates whether non-financial Jordanian firms follow symmetrical or asymmetrical adjustment model. Then, an interaction model with the size and profitability (firm characteristics) investigated the impact of low/high profit and small/large size on the adjustment of leverage towards the target leverage ratio. This paper covered the period of 14 years (2002-2015) for a total of 110 companies listed on Amman Stock Exchange (75 industrial and 35 services). Results indicate that although Jordanian firms seek a target leverage ratio, their adjustment towards that target is Asymmetrical and high profitable and large companies tend to adjust faster than low profitable and small size companies.

scholarly journals Does Mobile Phone Penetration Affect Divorce Rate? Evidence from China

2018 ◽  
Vol 10 (10) ◽  
pp. 3701 ◽  
Author(s):  
Jiaping Zhang ◽  
Mingwang Cheng ◽  
Xinyu Wei ◽  
Xiaomei Gong
Keyword(s):  
Mobile Phone ◽  
Eastern China ◽  
Divorce Rate ◽  
Central China ◽  
Western China ◽  
Explanatory Variables ◽  
Information And Communication ◽  
Lag Times ◽  
One Year ◽  
The Impact

Marital happiness is an important symbol of social harmony and can help promote sustainable economic and social development. In recent years, the rapid rise of the divorce rate in China, a country where the divorce rate had previously been low, has attracted wide attention. However, few articles have focused on the popularization of information and communication technology's impact on China’s rising divorce rate in recent years. As a first attempt, the provincial panel data during the period 2001–2016 is applied to study quantitatively the relationship between mobile phone penetration and the divorce rate. In order to get more reliable estimation results, this paper uses two indicators to measure the divorce rate, and quantile regression is applied for further analysis. Additionally, one-year to five-year lag times of the mobile phone penetration are used as the core explanatory variables in order to analyse the lagging effect of mobile phone penetration on divorce rate. The result shows that the correlation between the mobile phone penetration and the divorce rate was statistically positive significant in China during the period 2001–2016. Furthermore, the paper also finds that mobile phone penetration had the greatest impact on divorce rate in central China, followed by eastern China, but it was not obvious in western China during this period. From a technological perspective, this paper provides some possible explanations for the rising divorce rate in China in recent years, and further enriches the relevant research on the impact of the development of information and communication technology on societal changes.

Reliability-based covariate analysis for complex systems in heterogeneous environment: Case study of mining equipment

2018 ◽  
Vol 233 (4) ◽  
pp. 593-604
Author(s):  
Amin Moniri-Morad ◽  
Mohammad Pourgol-Mohammad ◽  
Hamid Aghababaei ◽  
Javad Sattarvand
Keyword(s):  
Complex Systems ◽  
Cox Regression ◽  
Reliability Evaluation ◽  
Distribution Functions ◽  
Heterogeneous Environment ◽  
Mining Equipment ◽  
Data Set ◽  
Explanatory Variables ◽  
The Impact

Operational heterogeneity and harsh environment lead to major variations in production system performance and safety. Traditional probabilistic model is dealt with time-to-event data analysis, which does not have the capability of quantifying and simulation of these types of complexities. This research proposes an integrated methodology for analyzing the impact of dominant explanatory variables on the complex system reliability. A flexible parametric proportional hazards model is developed by focusing on standard parametric Cox regression model for reliability evaluation in complex systems. To achieve this, natural cubic splines are utilized to create a smooth and flexible baseline hazards function where the standard parametric distribution functions do not fit into the failure data set. A real case study is considered to evaluate the reliability for multi-component mechanical systems such as mining equipment. Different operational and environmental explanatory variables are chosen for the analysis process. Research findings revealed that precise estimation of the baseline hazards function is a major part of the reliability evaluation in heterogeneous environment. It is concluded that an appropriate maintenance strategy potentially mitigate the equipment failure intensity.

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