Another Hunt for the Capital Structure Puzzle: Relationship of Leverage and Returns in the REIT Market

2009 ◽  
Keyword(s):  
Capital Structure ◽  
Relationship Of ◽  
The Capital Structure

Factors influencing the structure of the Russian companies' capital

2020 ◽  
Vol 26 (7) ◽  
pp. 1647-1660
Author(s):  
O.N. Likhacheva ◽  
A.S. Belikevich
Keyword(s):  
Correlation Analysis ◽  
Capital Structure ◽  
Systems Approach ◽  
Empirical Studies ◽  
Factors Influencing ◽  
Oil Contracts ◽  
Economic Landscape ◽  
Relationship Of ◽  
Trade Wars ◽  
The Capital Structure

Subject. In the uncertain market environment, the optimal structure of capital is getting more important because it influences the competitiveness of a firm, its financial sustainability and solvency and, consequently, a success. Herein we dwell upon the hypothesis presuming the existence of capital structure determinants. Objectives. We review empirical studies on the subject, analyze determinants of the Russian companies’ capital structure. Methods. The study is based on the systems approach and methods of statistical analysis. Results. It is necessary to monitor how capital is shaped and formed. We investigated proceedings on factors influencing the capital structure and discovered relevant hypotheses, carrying out the correlation analysis of such factors. Conclusions and Relevance. It is especially important to examine factors influencing the capital structure, and find the appropriate format for the economy struggling through the crisis. The coronavirus pandemic unavoidably reshapes the global economic landscape, which has already been under the pressure of deglobalization processes (trade wars, repudiation of oil contracts). The correlation analysis did not reveal any relationship of the variables in question (the company’s age, ROE, ROA, MOEX, key rate, GDP, PPI) and the capital structure. Further research should be devoted to other factors and consider the unreasonableness and psychological background of managers’ behavior who make decisions concerning the capital structure.

scholarly journals Is There Any Relation between Intellectual Capital and the Capital Structure of a Company? The Case of Polish Listed Companies

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 23-33
Author(s):  
Monika Bolek ◽  
Katerina Lyroudi
Keyword(s):  
Capital Structure ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Equity Capital ◽  
Warsaw Stock Exchange ◽  
Relationship Of ◽  
The Relationship ◽  
A Company ◽  
The Capital Structure

Abstract This study investigates the relationship of the intellectual capital of a company (proxied by its intangible assets), with leverage and equity and capital structure. Our empirical results indicate that there is a negative relation between the intellectual capital (intangible assets) of a company and its leverage based on the Warsaw Stock Exchange main market and NewConnect alternative market. Moreover, the equity capital is found positively related to the level of intangibles in each of the two markets. These results support the thesis that intellectual capital (intangible assets) influences the capital structure of a company.

scholarly journals Capital structure, corporate governance, and the effect of Sarbanes-Oxley

2019 ◽  
Vol 17 (1) ◽  
pp. 166-172 ◽  
Author(s):  
Mark Bertus ◽  
John S. Jahera Jr. ◽  
Keven Yost
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Agency Theory ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Agency Relationship ◽  
Legislative Action ◽  
Sarbanes Oxley ◽  
Relationship Of ◽  
The Capital Structure

The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to the capital structure decisions of corporations which have previously been shown to be related to agency measures and corporate governance. It is the objective of this research to examine the capital structure of U.S. firms as they relate to corporate governance measures and to determine the effect, if any, of Sarbanes-Oxley.

scholarly journals Enterprise capital - Definition, theory and determinants of the structure

2021 ◽  
Vol 9 (6) ◽  
pp. 29-33
Author(s):  
Marcin Walczak
Keyword(s):  
Capital Structure ◽  
Balance Sheet ◽  
Optimal Structure ◽  
Main Research ◽  
Common Definition ◽  
Risk Appetite ◽  
Universal Approach ◽  
Definition Of ◽  
Relationship Of ◽  
The Capital Structure

Purpose of the study: The main goal of the article is to define the company's capital, the concept of which in the literature is insignificant and broad. The subject of the research is also the characteristics of the capital structure and the factors that determine it. Methodology: The main research method was a critical review of the literature in the field of shaping the capital structure of enterprises, also in the perspective of the evolution of the theory of the optimal capital structure and the factors determining it. Main findings: The most common definition of capital describes this concept as a source of financing for the activities of an enterprise, and therefore equates it with the balance sheet concept of liabilities. The sources of origin of funds financing business activities forces the managers to search for their optimal structure ensuring the proper relationship between the planned profit and the acceptable level of risk. The literature presents many theories of capital structure and factors shaping it. When shaping the share of equity and borrowed capital in the total of liabilities, one should take into account the business sector of the enterprise, its environment and the risk appetite of the managers. Application of the study: The presented attempt to define the company's capital is in line with the considerations on this subject so far and aims to standardize this concept in the literature. The cross-section of the theory of capital structure allows for a historical approach to this issue and confirmation of the multidimensionality of the presented issues. The presented factors shaping the capital structure of enterprises specify the areas on which managers should focus when looking for an optimal relationship of equity and foreign capital. Originality/Novelty of the study: The issue of defining capital and its optimal structure is not new in the literature. However, it requires permanent analysis, which is conditioned by the volatility of macroeconomic and microeconomic conditions. Difficulties in a universal approach to this subject also force detailed research in specific industries and economic conditions.

scholarly journals Contributing Factors of Capital Structure: A Case of Non-Financial Companies Listed at KSE 100

2018 ◽  
Vol 4 (2) ◽  
pp. 127-133
Author(s):  
Lala Rukh ◽  
Sangeen Khan ◽  
Hazrat Bilal
Keyword(s):  
Capital Structure ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Hierarchy Theory ◽  
Contributing Factors ◽  
Leverage Ratio ◽  
Time Period ◽  
Relationship Of ◽  
The Capital Structure

The current study has taken the firms listed on KSE (Karachi Stock Exchange) now called Pakistan stock exchange. The data for the said purpose is collected for five years of time period from 2005 to 2010. The results obtained demonstrate that all the selected variables under study shows a highly significant impact on the determinants of capital structure except the tangibility of the asset.  The insignificant relationship of tangibility with the capital structure supports the financing hierarchy theory.  While the Growth, Size and profitability shows a significant and negative relationship with leverage. The negative relationship of growth shows that higher the growth of the firms lower will be the leverage maintained by the firm. Similarly, firms with smaller size show that such firms prefer high leverage as compared to firms of larger size. The results reveal that higher the profitability of the firm lower will be the leverage ratio. While the positive relationship of the volatility of the earnings states that firms with higher risks has high leverage ratio. Overall a detailed description and impact of the different variables on leverage is provided in the current study.

scholarly journals PENGARUH EFEK LEVERAGE SEBAGAI PEMODERASI TERHADAP HUBUNGAN ANTARA RETURN ON EQUITY (ROE) DAN STRUKTUR MODAL

2020 ◽  
Vol 5 (3) ◽  
pp. 307-313
Author(s):  
Sherly Fristylia Ramdini ◽  
Francis Hutabarat
Keyword(s):  
Real Estate ◽  
Capital Structure ◽  
Secondary Data ◽  
Data Retrieval ◽  
Annual Reports ◽  
Return On Equity ◽  
The Real Estate ◽  
Relationship Of ◽  
The Relationship ◽  
The Capital Structure

Research that can be done to study the relationship of return on equity to capital structure with Leverage dieminten period 2017-2018 Property Real Estate Subsector on the IDX. Secondary data retrieval is based on 14 units from the Property Real Estate sub-sector using Purposive Sampling techniques and related annual reports with the following company codes APLN, ASRI, KIJA, GAMA, BSDE, BKSL, CTRA, MYRX, SMDM, SMRA, LPCK, LPKR, BEST, and FATHER. The results of this study indicate that leverage has a good or positive relationship with the capital structure in the Real Estate and Property emintent for the period 2017-2018. While ROE does not have a relationship related to the Capital Structure of the emintent in Real Estate and Property listed on the IDX for the period 2017-2018

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 Capital Structure Puzzle: The Evidence Revisited

CFA Digest ◽  
2006 ◽  
Vol 36 (1) ◽  
pp. 16-17
Author(s):  
Lester C. Cheng
Keyword(s):  
Capital Structure ◽  
The Capital Structure

An impact of corporate management on the capital structure of Russian companies

2017 ◽  
Vol 23 (35) ◽  
pp. 2076-2087 ◽  
Author(s):  
E.A. Fedorova ◽  
◽  
T.M. Denisova ◽  
I.V. Lukashenko ◽  
◽  
...  
Keyword(s):  
Capital Structure ◽  
Corporate Management ◽  
The Capital Structure

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

Sign in / Sign up

Export Citation Format

Share Document