scholarly journals Relationship between the determinants of capital structure and debt ratio: evidence from listed manufacturing companies in Sri Lanka

2021 ◽  
Vol 15 (2) ◽  
pp. 1
Author(s):  
Athambawa Haleem
Keyword(s):  
Sri Lanka ◽  
Capital Structure ◽  
Debt Ratio ◽  
Manufacturing Companies

scholarly journals Analysis of Factors Determining Capital Structure of Firms Listed in Colombo Stock Exchange in Sri Lanka

2021 ◽  
Vol 04 (11) ◽  
Author(s):  
M.B.M. Amjath ◽  
Keyword(s):  
Sri Lanka ◽  
Capital Structure ◽  
Firm Size ◽  
Negative Impact ◽  
Stock Exchange ◽  
Equity Capital ◽  
Debt Ratio ◽  
Endogenous Factors ◽  
Significant Negative Impact

Capital structure describes a mix of long-term debt capital and equity capital employed by a company to fund its operation and finance its assts. The objective of the study is to identify the determinants of the capital structure and examine whether each of the determinants have significant impact on capital structure. A sample of 25 beverage food and tobacco sector firms listed on Colombo Stock exchange(CSE) in Sri Lanka over the period of 2016 to 2020 were considered for the study. The independent variables such as profitability (PROR), firm size (FMSZ), tangibility (TANR) and liquidity (LIQR) and dependant variable such as long term debt ratio (LTDR), short term debt ratio (STDR) were used to measure the leverage level of the firms. The data were analysed and hypotheses were tested through regression analysis and correlation analysis by use of SPSS. Coefficient of regression used to identify the significant impact of each determinant against the endogenous factors. The investigation empirical findings reveals that firm size, tangibility and liquidity have significant negative impact on leverage level (STDR), while profitability has positive insignificant impact on leverage level (SDTR). On the other hand all four element have insignificant relationship with LTDR.

Nigeria Ailing Industries and the Capital Structure Theory: A Need for Concern

2013 ◽  
Vol 03 (08) ◽  
pp. 31-40
Author(s):  
Ajeigbe Kola Benson ◽  
Fasesin Oladipo Oluwafolakemi ◽  
Ajeigbe Omowumi Monisola
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Stock Exchange ◽  
Capital Intensity ◽  
Structure Theory ◽  
Debt Ratio ◽  
Manufacturing Companies ◽  
Explanatory Variables ◽  
Tax Shield ◽  
Total Debt

It is necessary to identify that what are factors contribute to the firms’ capital structure composition in its operation. Hence the present study was undertaken with the objective of finding out the relationship between capital structure determinants and ailing manufacturing firms of the listed companies in Nigeria. Using a multiple regression analysis, ailing manufacturing companies in Nigeria stock exchange market was examined for the period of 2005-2010. The final sample consists of 14 manufacturing companies. In this study, dependent variable that is, leverage level of the companies, is measured by long-term debt ratio, short term debt ratio and total debt ratio. Capital structure determinants (independent variables) are measured by capital intensity, tangibility, profitability, firm size and non- debt tax shield. Findings showed that the direction of the explanatory variables such as tangibility, profitability, firm size and non-debt tax shields with total debt largely consistent with the explanations of trade-off theory and prove past empirical findings also.

scholarly journals The Impact of Capital Structure on the Profitability of Publicly Traded Manufacturing Firms in Bangladesh

2019 ◽  
Vol 6 (2) ◽  
pp. 1 ◽  
Author(s):  
Md. Ataur Rahman ◽  
Md. Sadrul Islam Sarker ◽  
Md. Joyen Uddin
Keyword(s):  
Capital Structure ◽  
Negative Impact ◽  
Positive Impact ◽  
Manufacturing Firms ◽  
Debt Ratio ◽  
Manufacturing Companies ◽  
Publicly Traded ◽  
Significant Negative Impact ◽  
Equity Ratio ◽  
The Impact

This research explores the impact of capital structure on the profitability of publicly traded manufacturing firms in Bangladesh. In this paper, we applied the fixed effect regression to find out the correlation among independent variables (debt ratio, equity ratio and debt to equity ratio) and dependent variables (return on asset, return on equity and earnings per share). A sample of 50 observations of selected 10 manufacturing companies listed in Dhaka Stock Exchange has been analyzed over the period of 2013 to 2017. This research reveals that the debt ratio and equity ratio have a significant positive impact but debt to equity ratio has a significant negative impact on ROA. This paper also exposes that, equity ratio has a significant positive impact but debt to equity ratio has a significant negative impact on ROE. Finally, debt and equity ratio has a significant negative impact on EPS. Findings of this research will help the listed manufacturing companies to maintain an optimum capital structure which will lead to the maximization of stockholders wealth.

Analysis of Factors Affecting Capital Structure in Food and Beverage Manufacturing Company

2018 ◽  
Vol 1 (2) ◽  
pp. 1-14
Author(s):  
Nur Hajja Aini ◽  
St Habibah
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Significant Influence ◽  
Fixed Effects ◽  
Random Effect Model ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Growth Opportunities ◽  
Food And Beverage ◽  
The Capital Structure

The purpose of this research to analyze the influence of firm size, liquidity, growth opportunities, tangibility asset, and business risk to the capital structure of listed food and beverage manufacturing companies in Indonesia and Vietnam Stock Exchange from 2010 to 2016. The result shows that the fixed effects model should be appropriate for this study as compared to the random effect model. Capital structure significantly differences between the two countries. Firm size has a positive but insignificant influence on the capital structure in Indonesia, whereas it has a positive and a significant influence on the capital structure in Vietnam. Liquidity has a negative and significant influence on the capital structure both in Indonesia and Vietnam. Growth opportunities have a negative but insignificant influence on the capital structure both in Indonesia and Vietnam. Asset tangibility has a positive but insignificant influence on the capital structure in Indonesia, but it has the negative but insignificant influence on the capital structure in Vietnam. Ultimately, the business risk has a negative and significant influence on the capital structure in Indonesia but has a positive and insignificant influence on the capital structure in Vietnam.

The Influence of Capital Structure, Growth, Company Size to Profitability and Company Value of Manufacture Firms Listed in Indonesia Stock Exchange

2019 ◽  
Vol 1 (3) ◽  
pp. 66-78
Author(s):  
Bernon Sampe Tondok ◽  
Cepi Pahlevi ◽  
Andi Aswan
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Positive Impact ◽  
Stock Exchange ◽  
Company Size ◽  
Manufacturing Companies ◽  
Descriptive Research ◽  
Company Value ◽  
Quantitative Descriptive ◽  
Company Growth

This study examines the effect of capital structure, company growth, company size on profitability and company value the cases of manufacturing companies listed on the Indonesia Stock Exchange. This research is quantitative descriptive research using path analysis. Classical assumption evaluations are conducted comprising of normality, linearity, autocorrelation, multicollinearity, and heteroscedasticity test. The sample is 33 manufacturing companies listed on the Indonesia Stock Exchange from period 2013 – 2017. The results of the study found that there was a positive impact of capital structure, company growth, firm size on profitability and value of manufacturing companies.

STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING. (STUDI KASUS PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BEI PERIODE 2016-2018).

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Anindiya Mustika Gunarwati ◽  
Siti Maryam ◽  
Sudarwati Sudarwati
Keyword(s):  
Capital Structure ◽  
Firm Size ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Company Size ◽  
Manufacturing Companies ◽  
Descriptive Research ◽  
Company Value ◽  
Quantitative Descriptive

The purpose of this study was to determine the effect of Capital Structure and Firm Size on Firm Value with Profitability as Intervening Variables. (Case Study on Manufacturing Companies in the Consumer Goods Industry Sector which are listed on the Indonesia Stock Exchange for the 2016-2018 Period). This research uses quantitative descriptive research type. Sample 27 companies using Purposive sampling technique. The analysis method uses path analysis with SPSS software version 21.Based on the test result min this study that the variable capital structure and company size have a positive and significant effect on profitability. Capital structure has no effect on firm value, firm size and profitability affect company value, and profitability is able to mediate the effect of capital structure and firm size on firm value. Keywords: capital structure, company size, profitability and firm value.

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