scholarly journals The Determinants of Capital Structure: Empirical evidence from Thai Banks

2013 ◽  
Vol 5 (8) ◽  
pp. 401-410 ◽  
Author(s):  
David E. Allen ◽  
Robert John Powell .

The aim of this study is to examine the determinants of the capital structure of Thai banks. The data spans a ten year period from 1999 – 2008. The differentiation point of this study is that, whereas most studies on capital structure focus predominantly on internal bank variables, this study, in addition to internal variables includes market-based risk variables. A range of market-based default and value at risk variables were considered which were then narrowed down to improve the model. Fixed effects panel data analysis is employed, with both market and book leverage used as dependent variables. The Thai bank study is benchmarked to Japanese and Malaysian banks. The study found that the significance of the market-based variables is greater for market leverage than for book leverage. The results can assist regulators and banks in understanding the impact of different market and internal variables on capital.

2016 ◽  
Vol 6 (4) ◽  
pp. 410-419
Author(s):  
Ziad Mohammad Zurigat

This study aims at investigating the impact of financial flexibility on the speed of target adjustment of capital structure. For this purpose, the partial adjustment model with interaction dummy term is used and tested using panel data analysis for a sample of 47 industrial firms listed in Amman Stock Exchange over the period of 1996 to 2014. The results of Random and fixed effects models showed that the target reversion of capital structure occurs slowly. The results also revealed that financial flexible firms adjust their leverage ratio much faster than less flexible firms. The tendency of making target reversion increases when inflexible firms have leverage above its target level, while inflexible firms with above-target leverage ratio adjust their leverage faster than flexible firms. These findings suggest that financial flexibility plays an important role on determining the financing decisions in Jordanian industrial firms. Moreover, they suggest how large bankruptcy risk is critical for industrial Jordanian firms. Hence, Industrial Jordanian firms should take into consideration the financial flexibility when they set their financial decisions to avoid the loss of profitable investment opportunities or experience the financial distress


2021 ◽  
Vol 13 (2) ◽  
pp. 1
Author(s):  
May Elewa

The purpose of this paper is to identify the impact of market capital MC and net profit NP on stock price SP and trade volume (TV) in the developing Egyptian business context. This study collects data from 29 non-financial organizations registered on the EGX 30 during the 6 month, 1/1/2020 to 30/6/2020, lockdown in Egypt due to the first wave of COVID-19. Data for the monthly confirmed cases and death cases of COVID-19 are collected for the 6 months of the study and compared to the monthly records of closing prices and trade volume in Egyptian poundsEGP. The study population represents 174 firm year observations. The firms studied operate in cash, have annual financial reports during the period 1/1 to 31/12, obtain complete financial data, and have not been eliminated all throughout the study. In this work the pooled model, the fixed effects model, and the random effects model are used.SPSSis applied to achieve the required statistical analysis. The study is a panel data analysis. Outcomes demonstrate existing substantial effects between market capital MC and stock price SP during the first wave of COVID-19. However, no significant effect is evident of the market capital MC and net profit NP with the trade volume TV during the first wave of this pandemic. This literature is advantageous for external and internal stakeholders and regulatory bodies. The study is a modest contribution that may help boost the business processes to reach better financial performance in times of unexpected catastrophes.


2019 ◽  
Vol 4 (4) ◽  
pp. 270-284
Author(s):  
Walaa Mahrous

Purpose This study aims to analyze the impact of global climate change on food security in the East African Community (EAC) region, using panel data analysis for five countries, over 2000-2014. Design/methodology/approach The determinants of food security are expressed as a function of rainfall, temperature, land area under cereal production, and population size. The paper used pooled fixed effects to estimate the relationship among these variables. Findings Findings show that food security in EAC is adversely affected by temperature. However, precipitation and increasing areas cultivated with cereal crops will be beneficial to ensure everyone's food security. Originality/value Actions for mitigating global warming are important for EAC to consolidate the region’s economic, political and social development/stability.


2019 ◽  
Author(s):  
Ke Hong YU ◽  
Xiao Mei Gan ◽  
Xu WEN

Abstract Background: This study aimed to empirically examine the influence of China’s macroeconomic development on the height of Chinese youth in the past 30 years, using provincial panel data collected from more than one million children. Methods: Panel data from seven longitudinal surveys (1985, 1991, 1995, 2000, 2005, 2010, and 2014) of the Chinese National Surveys on Students’ Constitution and Health, including students aged 7–22 years from 27 provinces, were utilized for data analysis. Fixed-effects models were used to estimate the association between economic growth and height. Results: For every 1% increase in per capita disposable income (PCDI), the average height of students significantly increased by approximately 0.009%. Stated another way, this implies that a doubling of income is associated with 0.9% increase in height, which is significant for height. The coefficient of PCDI in the last decade is higher than that of in the early two decades. The average height of boys was approximately 3.9% higher than that of girls. The average height difference between high and low ages in the sample was 1.9%. The impact of policies on students' height was extremely small and may have little practical significance. Conclusion: China’s economic growth has a significant positive effect on the height of urban Chinese students without stagnation.


Sign in / Sign up

Export Citation Format

Share Document