Impact of Firm Level Factors on Capital Structure: Evidence from Ethiopian Insurance Companies
Keywords:
capital structure, ethiopia, firm level factors, insurance companies
Abstract
The purpose of this study is to investigate important firm-level determinants of capital structure on Ethiopian insurance companies. The study employs panel regression model. The results show that growth, profitability and age of the firm were found to have significant influence on Ethiopian insurance companies' capital structure. Liquidity and business risk were also significant for long term debt and total debt ratio respectively. However, among the hypothesized capital structure determinants asset tangibility and size of the firm were found to have statistically insignificant contribution on capital structure of Ethiopian insurance companies.
Downloads
- LaTeX Kaleidoscope* (Beta by AI)
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
How to Cite
References
J. Abor (2005) The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. 6, 438-445.
S. Akhtar (2005) The Determinants of Capital Structure for Australian Multinational and Domestic Corporations. 30, 321-341.
Basil Al-Najjar & Peter, T. (2008) The relationship between capital structure and ownership structure. 34, 919-933.
L. Booth, V. Aivazian, A. Demirgüc-Kunt, V. Maksimovic (2001) Capital Structures in Developing Countries. 56(1), 87-130. https://doi.org/10.1111/0022-1082.00320
Chris Brooks (2008) Introductory Econometrics for Finance, 2nd ed., the ICMA Centre. https://doi.org/10.1017/cbo9780511841644
D. Brounen, P. Eichholtz (2001) Capital Structure Theory: Evidence from European Property Companies' Capital Offerings. 2, 4-21.
G. Cassar, S. Holmes (2003) Capital structure and financing of SMEs: Australian evidence. 43, 123-147.
F. Chittenden, N. Michaelas, P. Poutziouris (1996) Financial policy and capital structure choice in UK SMEs: empirical evidence from company panel data. 12, 113-130.
Imed Chkir, Jean-Claude Cosset (2001) Diversification strategy and capital structure of multinational corporations. 11(1), 17-37. https://doi.org/10.1016/s1042-444x(00)00040-2
T. Dilek, T. Ozlem, T. Ayca (2009) Determinants of capital structure for Turkish firms: A panel data analysis. 29, 1450-2887.
Ç. Ebru (2011) An empirical investigation on the determinants of capital structures of Turkish firms. 9, 35-42.
Faris Shubiri (2010) Determinants of capital structure choice: A case study of Jordanian Industrial Companies. 24, 2457-2494.
M. Harris, A. Raviv (1990) Capital Structure and the Informational Role of Debt. 45, 321-349.
(2004) Annual report.
M. Jensen (1986) Agency costs of free cash flow, corporate finance, and takeovers. 76, 323-329.
M. Lipson, S. Mortal (2010) Liquidity and capital structure. 28, 345-356.
A. Mary, M. El-Sayeda, S. Mohamed (2011) The determinants of capital structure in Egyptian. 9, 84-99.
F. Modigliani, M. Miller (1958) The cost of capital, corporation finance and the theory of Investment. 48, 261-297.
F. Modigliani, M. Miller (1963) Corporation income taxes and the cost of capital: a Correction. 53, 433-443.
S. Mohammad (2007) The determinants of capital structure for selected Bangladeshi listed Companies.
E. Morellec (2001) Asset liquidity, capacity choice and the pricing of corporate securities. 61, 173-206.
Stewart Myers (1984) The Capital Structure Puzzle. 39(3), 575. https://doi.org/10.2307/2327916
Stewart Myers (2001) Capital Structure. 15(2), 81-102. https://doi.org/10.1257/jep.15.2.81
S. Myers (2003) Financing of Corporations. 1, 216-253.
Stewart Myers, Nicholas Majluf (1984) Corporate financing and investment decisions when firms have information that investors do not have. 13(2), 187-221. https://doi.org/10.1016/0304-405x(84)90023-0
A. Naveed, A. Zulfqar, A. Ishfaq (2010) Determinants of capital structure: A case of life insurance sector of Pakistan. 24, 7-12.
A. Onaolapo, S. Kajola (2010) Capital structure and firm performance: Evidence from Nigeria. 25, 70-82.
M. Rafiq, A. Iqbal, M. Atiq (2008) The Determinants of Capital Structure of the Chemical Industry in Pakistan. 13, 139-158.
R. Rajan, L. Zingales (1995) What Do We Know about Capital Structure? Some Evidence from International Data. 50, 1421-1460.
Sheridan Titman, Roberto Wessels (1988) The Determinants of Capital Structure Choice. 43(1), 1-19. https://doi.org/10.1111/j.1540-6261.1988.tb02585.x
W. Yesegat (2009) Value added tax in Ethiopia: A study of operating costs and Compliance.
Published
2013-03-04
Issue
Section
License
Copyright (c) 2013 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.