The Firm-Specific Determinants of the Target Capital Structure: Evidence from Bosnia and Herzegovina Panel Data

Mangafić, Jasmina; Martinović, Danijela

doi:10.5901/mjss.2015.v6n2s5p188

Cited by 5 publications

(3 citation statements)

References 41 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…These results are consistent with the argument that tradeoff and pecking order theories are complementary as the literature has been confirming (e.g. Byoun, 2008;Leary and Roberts, 2010;Degryse et al, 2012;Serrasqueiro and Nunes, 2014;Mangafic and Martinovic, 2015;Pacheco and Tavares, 2017;Matias et al, 2018;Barclay and Smith, 2020).…”

Section: Entrepreneurial Firms' Capital Structure Determinantssupporting

confidence: 91%

See 1 more Smart Citation

Does managerial overconfidence affect capital structure rebalancing for entrepreneurial firms?

Carvalho,

Pacheco,

Sardo

et al. 2024

JSBED

View full text Add to dashboard Cite

PurposeThe behavioural theory adds a new paradigm of analysis with the assumptions of the decision maker’s cognitive biases and their repercussions on financing decisions. The aim of the study is to analyse the repercussions of these biases on the adjustment speed of firm’s capital structure toward the optimal level.Design/methodology/approachBased on a partial adjustment model, the study uses the Dynamic Panel Fractional estimator to analyse panel data from 4,990 Portuguese entrepreneurial firms.FindingsThe results show that the cognitive overconfidence bias impacts the entrepreneurial firm’s capital structure. In fact, the firms run by overconfident managers adjust more slowly than their counterparts. Furthermore, the findings suggest that entrepreneurial firms make relatively fast adjustments toward the optimal debt level and follow a hierarchical financing order in the funding process.Practical implicationsThe results of this paper are not only interesting to the academia, but also contain practical implications for corporate, institutional and business policy and governance. First, the paper introduces a new measure of cognitive bias in optimistic managers, which is useful for current and future academic research. Also, in practical terms, the findings of the paper reveal that when a company is contemplating hiring a manager, it should consider whether they need an optimistic or non-optimistic manager based on the company's present life cycle or situation.Originality/valueThe current analysis extends the existing literature. The study suggests that financial classical and behavioural paradigms should not be separated, which can provide evidence to help narrow the gap between these two major perspectives.

show abstract

Section: Entrepreneurial Firms' Capital Structure Determinantssupporting

confidence: 91%

“…Byoun, 2008; Leary and Roberts, 2010; Degryse et al. , 2012; Serrasqueiro and Nunes, 2014; Mangafic and Martinovic, 2015; Pacheco and Tavares, 2017; Matias et al. , 2018; Barclay and Smith, 2020).…”

Section: Resultsmentioning

confidence: 99%

Does managerial overconfidence affect capital structure rebalancing for entrepreneurial firms?

Carvalho,

Pacheco,

Sardo

et al. 2024

JSBED

View full text Add to dashboard Cite

show abstract

“…Existem várias teorias na literatura que abordam a estrutura de capital como tema central (Jensen & Meckling, 1976;Ross, 1977;Myers, 1984;Myers & Majluf, 1984;Baker & Wurgler, 2002;Rajan, 2012), entretanto, nenhuma delas domina o campo teórico e proporciona um consenso entre os pesquisadores da área (Myers 2001;Zou & Xiao, 2006;Albanez, 2012;Martins & Famá, 2012;Almeida, 2014;Nisiyama & Nakamura, 2014;Mangafić & Martinović, 2015).…”

Section: Referencial Teóricounclassified

A relevância da estrutura de capital no desempenho das firmas: uma análise multivariada das empresas brasileiras de capital aberto

Machado

Prado

Vieira

et al. 2016

REPEC

View full text Add to dashboard Cite

As mudanças econômicas ocorridas nos últimos anos tornaram a dinâmica do mercado brasileiro mais complexo, o que impacta diretamente na administração de grandes organizações, principalmente em tarefas de cunho gerencial, como é o caso das decisões referentes à definição da estrutura de capital. Contudo, a literatura desse campo teórico está polarizada em dois trabalhos seminais: o primeiro, de Durand (1952, 1959), aborda a existência de uma estrutura ótima de capital que maximiza o valor da firma; e, no outro extremo, o trabalho de Modigliani e Miller (1958, 1963) considera que o modo como as firmas se financiam é irrelevante. Nesse sentido, o objetivo foi verificar a efetiva interferência da estrutura de capital no desempenho das firmas brasileiras listadas na BM&FBOVESPA. A amostra se constituiu em dados de corte transversal (cross section) e foram selecionados dos últimos balanços de todas as empresas listadas na BM&FBOVESPA, disponíveis na base de dados Economática®. As técnicas utilizadas foram a análise de variância (ANOVA) e a análise discriminante. Entre os indicadores utilizados, observou-se que apenas a liquidez geral, o grau de imobilização, a Q de Tobin, e a oportunidade de crescimento, foram significativas a 1%. Os resultados encontrados indicam que a estrutura de capital não está diretamente relacionada com o desempenho das firmas brasileiras listadas na BM&FBOVESPA. Nesse ínterim, os resultados apontam para a consolidação das teorias financeiras expostas por Modigliani e Miller (1958, 1963) em oposição à corrente tradicionalista iniciada nos estudos de Durand (1952).

show abstract

The Determinants of Capital structure in Ethiopian Private Commercial Banks: A Panel Data Approach

Assfaw¹

2020

JEBAV

View full text Add to dashboard Cite

A wrong capital structure decision causes business frailer. However, still, what determinants optimal capital structure decision of companies remain the puzzles of many research scholars. This study is, therefore, aimed to investigate the determinants of the capital structure decision of private commercial banks in Ethiopia. The secondary data were obtained from audited annual financial reports of ten private commercial banks and the National Bank of Ethiopia covering the period of 2010-2018. The panel data were analyzed with a clustered robust random effect regression model. The study reveals that there is a significant positive relationship between earning volatility, size of banks, and taxation with leverage while profitability and asset tangibility are found to have a significant negative effect on the banks' leverage decision. The empirical findings of the study imply that the two capital structure theories, static trade-off and pecking order, are essentially explaining the capital structure decision of Ethiopian private commercial banks. Private commercial banks in Ethiopia should pay due attention to the microeconomic variables without overlooking the macroeconomic condition while articulating their optimal capital mix which can minimize the weighted average cost of capital and enhance the value of the company.

show abstract

The Firm-Specific Determinants of the Target Capital Structure: Evidence from Bosnia and Herzegovina Panel Data

Abstract: The purpose of this study is to carry out a comprehensive and robust analysis of the determinants of the capital structure of the Federation Bosnia and Herzegovina (FBiH)

Cited by 5 publications

References 41 publications

Does managerial overconfidence affect capital structure rebalancing for entrepreneurial firms?

Does managerial overconfidence affect capital structure rebalancing for entrepreneurial firms?

A relevância da estrutura de capital no desempenho das firmas: uma análise multivariada das empresas brasileiras de capital aberto

The Determinants of Capital structure in Ethiopian Private Commercial Banks: A Panel Data Approach

Contact Info

Product

Resources

About