The Firm-Specific Determinants of Capital Structure in Beverage Industry in Europe

Impacts of Firm Characteristics on Mining Companies Capital Structure

“…This result is consistent with Pongsupatt and Pongsupatt (2019) and Khan et al (2020), Hussain et al (2020). However, it contradicts with the research conducted by Farrukh and Asad (2017), Jahfer and Madurasinghe (2019), Dalci et al (2019), Moradi and Paulet (2018), which stated that nondebt tax shield has a positve impact on capital structure.…”

“…Some According to Kumar (2017) profitability is mostly defined as the earnings before interest and tax that is scaled by total assets. Findings from Thuraisingam and Kangetharan (2020) research found that profitability is negatively associated with capital structure, which other studies also yielded the results from Farrukh and Asad (2017), Pongsupatt and Pongsupatt (2019), Dalci et al (2019). As profitability increases, this leads to the firm having more internal funds that is used as a source of internal financing.…”

“…Given plenty of diverging empirical results of the relationship between liquidity and capital structure, the following hypothesis is formulated H3: Liquidity has an impact on capital structure Non-Debt Tax Shield Kumar (2017) stated that non-debt tax shield are the reductions from tax that you get through depreciation, amortization. Previous research by Farrukh & Asad (2017), Jahfer & Madurasinghe (2020), Dalci et al (2019) found that non-debt tax shield is positively correlated to capital structure. However according to Pongsupatt (2020) Hussain et al (2020), Tamam and Wibowo (2012) the opposite prevails.…”

“…That supports both the Trade Off theory and Pecking order theory, as the usage of debt gives tax savings and firms prefer debt first as a source of external funds. However, studies conducted by Thuraisingam and Kengatharan (2020), Dalci et al (2019) showed that tangibility has negative relationship with capital structure. Given plenty of diverging empirical results of the relationship between asset tangibility and capital structure, the following hypothesis is formulated H5: Asset tangibility has an impact on capital structure.…”

“…Several studies in the empirical literature on the relationship between firm size and capital structure. Research from Research from Jahfer and Madurasinghe (2019), Dalci et al (2019), Moradi and Paulet (2018) found that size positively impact capital structure. As firms begin to grow they become more diversified and make it less risky to obtain low cost debt financing.…”