Exploring the Determinants of Financial Structure in the Technology Industry: Panel Data Evidence from the New York Stock Exchange Listed Companies

Vintilă, Georgeta; Gherghina, Ştefan Cristian; Toader, Diana Alexandra

doi:10.3390/jrfm12040163

Cited by 12 publications

(19 citation statements)

References 47 publications

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“…Whereas, it has significant negative impact on STLR for overall sample data. It supports the conclusion of POT (Myers & Majluf, 1984) and TOT (Myers, 1984) as well as Berkman et al (2016), and Vintila et al (2019). It signifies that firms with higher LQD manage their short-term funds requirement internally and do not rely on external financing.…”

Section: Liquiditysupporting

confidence: 78%

“…Ramli, Latan and Solovida (2019) have suggested direct impact of liquidity as higher current ratio indicates capabilities to stand against short-term financial crisis. As against this, POT and ACT signifies that greater liquidity results into less borrowings as it ensures sufficient funds and less requirement of external funds (Berkman, İskenderoğlu, Karadeniz & Ayyildiz, 2016;Vintila et al, 2019). Following the conclusion of POT and TOT, negative relationship has been predicted between liquidity and borrowings.…”

Section: Liquiditymentioning

confidence: 97%

“…An abridged view of CS theories has been presented in figure 1. Besides theatrical contributions, ample of empirical inquiries have been conducted on determinants of CS but results are inconclusive (Bhaduri, 2002;Rani, Narain & Dhawan, 2016;Sathyanarayana, Harish & Kumar, 2017;Iqbal, Ahmad & Ali, 2019;Vintila, Gherghina & Toader, 2019). Such indecisive research findings require further empirical evidence to support the theatrical underpinnings.…”

Section: Introductionmentioning

confidence: 99%

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Moderating Effect of Firm Size on Capital Structure Determinants: Evidence From Indian Food Processing Industry

Desai¹,

Desai

2021

CJFA

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Present research paper examines the determinants of capital structure decision of Indian food processing industry and assesses the moderating effect of firm size on this relationship. Using financial data of 40 firms for 10 years (2009-10 to 2018-19), panel least square regression analysis has been performed for data analysis. Based on regression results, the study concludes tangibility, tax rate, and cash flow as significant determinants of long-term borrowing for overall sample firms. On the other hand, tangibility, liquidity and profitability are significant factors affecting short-term borrowings of selected companies. Further, the study confirms that size of the firm moderates the effect of selected determinants on debt ratio of different categories of firms. It is, further, found that small size firms employ more debt with increasing profitability whereas medium and large size firms tend to reduce their debt levels with increasing profitability. The research findings will enhance understanding of capital structure determinants by probing the moderating impact of company size on it. The findings will be helpful to corporate managers in forming their borrowing strategies based on the relative size. Further, they can identify important factors to be considered while choosing debt or equity or in case of debt either short term or long term.

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Section: Liquiditysupporting

confidence: 78%

Section: Liquiditymentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

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Moderating Effect of Firm Size on Capital Structure Determinants: Evidence From Indian Food Processing Industry

Desai¹,

Desai

2021

CJFA

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“…Therefore, the following are used as corporate governance control variables in this study: (1) the proportion of non-executive directors; (2) the proportion of female directors; and (3) the overall board size, as measured by the logarithm of the total number of directors on the firm's board. Furthermore, we include several additional firm-specific control variables which previous studies (e.g., Yousef 2019; Vintilă et al 2019;Ahmed and Bhuyan 2020;Kedzior et al 2020) have shown to play a role in capital structure decisions; these include firm size, profitability, tangibility, and growth opportunities.…”

Section: Methodsmentioning

confidence: 99%

The Impact of Internationalization of the Boardroom on Capital Structure

Yousef

Almoumani

Samara

2020

JRFM

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We develop a theoretical model based on several theories, mainly pecking order theory and theory of information economics, as well as on theoretical arguments provided by economic sociology and psychology to investigate for the first time the impact of the presence of a foreign board member on capital structure. The sample of study covers 3773 non-financial U.S. firms and includes 23,196 observations over the period from 2010 to 2018. We used pooled OLS, fixed effects, random effects, and the general method of moments (GMM) in order to analyze the impact of foreign directors on capital structure after controlling for a range of factors, including size, year, and industry effects. The results of this empirical analysis support the proposed hypothesis. Of particular note is the finding that the proportion of foreign directors on the board correlates negatively with debt structure. Furthermore, we demonstrate that our findings hold up in the face of all appropriate robustness checks. Our study contributes to the existing literature by including an international dimension of board diversity, specifically the influence of foreign directors on corporate capital structure. We argue that increasing international diversity in the boardroom improves both the quantity and quality of the information exchange between insiders and shareholders, thereby reducing adverse selection costs.

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“…Capital structure policies are among the essential part driving the orientation of decisions that fulfill several contradictory objectives which demanding stakeholders place before a financial director (Agarwal 2013). With regard to the papers concerning capital structure, Vintilă et al (2019) established that factors such as tangibility, growth, size, or liquidity have an important influence on long-term and short-term debt rates of corporations part of the technology industry and listed on the New York Stock Exchange. Furthermore, Kedzior et al (2020) concluded that liquidity, firm age, and investments in innovativeness determine capital structure of companies listed in the Warsaw Stock Exchange that are classified as high-tech firms.…”

mentioning

confidence: 99%