Testing Some Determinants of Capital Structure “Evidence from Saudi Arabia” Analytical Study

Alzubaidi, Hamzah; Salameh, Hussein

doi:10.4197/eco.28-1.2

Cited by 2 publications

(6 citation statements)

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“…Based on the results shown in Table 3, there is a negative relationship between the liquidity ratio and the leverage, this enables firms to use this liquidity instead of borrowing from external sources since these firms avoid debt to get rid of the high cost of funds. This is consistent with (Omet and Mashharawe, 2003;Siam et al, 2005;Jong et al, 2008;Ramadan and Alokdeh, 2011;Alzubaidi and Salameh, 2014), and the Pecking Order Theory. But contradicts with the Trade-Off Theory.…”

Section: Regression Analysissupporting

confidence: 87%

“…7. Liquidity: (Jong et al, 2007;Alzubaidi and Salameh, 2014) showed that there is a negative relationship between the liquidity ratio and the leverage, the firms with higher liquidity ratio, the higher its ability to pay its obligations resulting in lower risk, and will not resort to borrowing to finance operations growth has. Ozkan (2001) pointed out that liquidity has a double impact on the firm's financial structure, where the relationship between the liquidity ratio and debt may negative or positive, that firms with high liquidity ratio will have a high capability to fulfill their obligations, which may have to resort to borrowing In case they need to finance their growth, this shows a positive relationship between the liquidity ratio and the debt, while other firms may use liquidity to finance growth processes instead of borrowing which leads to a low debt, this shows a negative relationship between the liquidity ratio and the debt.…”

Section: Firm Characteristicsmentioning

confidence: 99%

“…4; Published by Sciedu Press 192 ISSN 1927-5986 E-ISSN 1927 6. Profitability (PROF): Based on (Ramadan and Alokdeh, 2011;Alzubaidi and Salameh, 2014). Profitability calculated through the following equation:…”

mentioning

confidence: 99%

“…7. Liquidity (LIQ): Based on (Omet and Mashharawe, 2003;Ramadan and Alokdeh, 2011;Alzubaidi and Salameh, 2014). Liquidity calculated through the following equation: LIQ = CA it / CL it ……….…”

mentioning

confidence: 99%

“…(5)Where PBT = Profit before tax for the fiscal year i for bank t. PAT = profit after tax for the fiscal year i for bank t.4. Risk (RSK):Based on(Ramadan and Alokdeh, 2011;Alzubaidi and Salameh, 2014). Risk calculated through the following…”

mentioning

confidence: 99%

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Determinants of Capital Structure: Evidence from Jordan

Almanaseer¹

2019

AFR

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This study aimed to explore the determinants of the capital structure of the banks listed in the Amman Stock Exchange. A sample of 13 Jordanian commercial banks of 16 banks listed on the Amman Stock Exchange selected for the period 2008-2017. The current study applied a fixed-effects regression model by using e-views to analyze the relationship between financial leverage and firm characteristics such as Risk, Size, profitability, Growth, liquidity, Tax, Age, tangibility, and macroeconomic variables such as Gross Domestic Product, Inflation. The study finds a significant positive relationship between financial leverage, age, growth, risk, size, and tax. Also, the study finds a significant negative relationship between financial leverage with GDP, inflation, liquidity, profitability, and tangibility.

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Section: Regression Analysissupporting

confidence: 87%

Section: Firm Characteristicsmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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confidence: 99%

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Determinants of Capital Structure: Evidence from Jordan

Almanaseer¹

2019

AFR

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Measuring the Extent of Liquidity's Impact on the Financial Structure

Ali,

Ayat,

Amna

2023

ijfirm

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Purpose:The study aimed to know the most important measures of liquidity affecting the financial structure, and the study was conducted on the Asia Cell Communications Company in Iraq and data were collected for the period (2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019). Design/Methodology/Approach: To achieve the objectives of the study, a time series analysis was conducted to find out the degree of financial stability, conducting autocorrelation relations, an analysis Simple linear regression, a number of hypotheses regarding the regression have been realized, and some of them were counterproductive, and the reasons for this were explained. Findings: As for the most important finding of the study is that the financial structure of the company depends largely on debt, which makes it lose flexibility, and that cash liquidity is insufficient to meet the company's short-term obligations. Practical Implications: The most important recommendation was to raise the market value of the company's shares and approve financing through stock offering. Originality/Value: The need to appoint experts in the field of advanced financial analysis in the company in order to develop financial plans.

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Testing Some Determinants of Capital Structure “Evidence from Saudi Arabia” Analytical Study

Cited by 2 publications

References 0 publications

Determinants of Capital Structure: Evidence from Jordan

Determinants of Capital Structure: Evidence from Jordan

Measuring the Extent of Liquidity's Impact on the Financial Structure

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