The Determinants of Capital Structure: An Empirical Study of New Zealand-Listed Firms

Abstract

This paper investigates capital structure determinants of New Zealand-listed firms. This study is an extension from previous studies conducted by Boyle andEckhold (1997) and, Wellalage &Locke (2012). Boyle and Eckhold and, Wellalage and Locke examine capital structure choices in New Zealand, especially the debt choices of NZ's corporate firms. Using a balanced-panel of 79 New Zealand-listed firms, this study employs a balanced panel method, using dynamic-panel Instrumental Variable-Generalised Methods of Moments (IV-GMM) as it corrects heteroskedasticity and endogeneity problems which might result in an unbiased and inconsistent estimation. All variables, apart from non-debt tax shields and profitability exhibit a significant impact on total debt. Overall, these variables confirm the trade-off theory,

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Determinan Struktur Modal Dan Nilai Perusahaan Pertambangan Pasca Uu Nomor 4 Tahun 2009

“…Namun hasil penelitian Wald (1999) menyimpulkan profitabilitas dan pertumbuhan perusahaaan memengaruhi rasio utang perusahaan. Penelitian Michaelas et al (1999), Huang dan Song (2006) serta Fauzi (2013) juga menyimpulkan bahwa profitabilitas, ukuran perusahaan, struktur aset, risiko bisnis, dan kepemilikan manajerial mempengaruhi struktur modal.…”

Family Impact on Capital Structure: Does Financial Crisis Matter?

“…The firms can use two common types of financing: equity and debt (Fauzi et al, 2013). Each type of financing has its own advantages and limitations when compared to one another.…”

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