Firm size and debt maturity as indirect determinants of capital structure: evidence form European panel data

Koralun-Bereźnicka, Julia

doi:10.1080/13504851.2017.1420869

Cited by 11 publications

(16 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Furthermore, according to the trade-off theory, firms with high growth rates tend to use less external financing because the growth rate is non-collateralized. In different studies, a negative relationship is reported between growth prospects and leverage which supports the proposition of trade-off theory (Koralun-Bereźnicka, 2018;Pepur, Ćurak, & Poposki, 2016;Choi, Yoo, Kim, & Kim, 2014). However, Shah and Jam-e-Kausar (2012) and Achy (2009) find a positive relationship between growth prospects and firm leverage level, indicating that a firm with high growth prospects will be inclined to look outside the firm to finance which is consistent with the pecking order theory.…”

Section: Growthsupporting

confidence: 59%

“…Since the conception of Modigliani and Miller (1958) irrelevance theory, scholars wrote many papers to understand the circumstances under which the capital structure matters. For instance, Koralun-Bereźnicka (2018) analyzed 11 European Union countries data to establish the relationship between capital structure and its determinants, M'ng, Rahman, and Sannacy (2017) examined the factors which affect the capital structure of firms operating in Malaysia, Singapore and Thailand; Wellalage and Locke (2013)corporate governance and capital structure in New Zealand's large listed companies. Eight years of data for 40 firms listed on the NZX50 Stock Exchange, are collected and observations are analysed using a conditional quantile regression.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do Firm Characteristics Determine Capital Structure of Pakistan Listed Firms? A Quantile Regression Approach

Khan¹,

Qu²,

Shah³

et al. 2020

JAFEB

View full text Add to dashboard Cite

The purpose of this study is to investigate the determinants of the capital structure of firms operating in a developing economy, Pakistan. The quantile regression method is applied on a sample of 183 non-financial companies listed on the Pakistan Stock Exchange during the period of 2008-2017. Specifically, the empirical analysis focuses on changes in the coefficients of the determinants according to the leverage ratio quantiles of the examined listed firms. The findings show that the capital structure of Pakistan listed firms differs between firms in different quantiles of leverage. These differences are significant with the sign of explanatory variables changes with the level of leverage. The research result found tangibility, profitability and age to be positively related to leverage among listed firms in Pakistan. However, size, liquidity and non-debt tax shield (NDTS) are negatively related to leverage. A firm's growth and risk are found to be insignificant predictors of capital structure in Pakistan listed firms. Moreover, the study also found a significant impact of industry characteristic on leverage. The findings of this study indicate that an individual firm's finance policy needs to be responsive to the firm's characteristics and should match with the different borrowing requirements of listed firms.

show abstract

Section: Growthsupporting

confidence: 59%

Section: Introductionmentioning

confidence: 99%

Do Firm Characteristics Determine Capital Structure of Pakistan Listed Firms? A Quantile Regression Approach

Khan¹,

Qu²,

Shah³

et al. 2020

JAFEB

View full text Add to dashboard Cite

show abstract

“…The tangibility had a negative significant association with debt using panel data modelling in the European firms (Sheikh, 2017;Sheikh & Wang, 2011;Koralun-Bereźnicka, 2017). Likewise, the tangibility was found to be a negative significant association along with debt as indicated by (Viviani, 2008;Koksal & Orman, 2015;Sardo & Serrasqueir, 2017).…”

Section: Source: Own Workmentioning

confidence: 87%

“…The tax shields had a positive significant association with debt using panel data modelling in the European firms (Chen et al, 2014;Koralun-Bereźnicka, 2017;Koksal & Orman, 2015). Further, the tax shields had a negative significant association along with debt as indicated by (Méndez, 2014).…”

Section: Source: Own Workmentioning

confidence: 93%

“…On the other hand, the term firm's age was calculated by taking the natural log for the number of years since a firm started its business operations as per (Öhman & Yazdanfar, 2017;Sardo & Serrasqueir, 2017;Zélia Serrasqueiro, 2011). Similarly, the business growth is described as the percentage change in sales (Nadeem Ahmed Koralun-Bereźnicka, 2017;Öhman & Yazdanfar, 2017;Sardo & Serrasqueir, 2017). On the other hand, firm's growth was calculated on the basis of yearly change in sales of total assets as used by (Seo et al, 2017).…”

mentioning

confidence: 99%

See 1 more Smart Citation

Role of Business Age, Scale & Risk in Debt Financing Choices for the Pakistani Textile & Apparel Industry

Bashir

Arshad

Asif

et al. 2020

Financial Internet Quarterly

View full text Add to dashboard Cite

The motivation for this research enquiry is to identify the role of the business age, size and risk for the choice of debt financing in the textile and apparel sector of Pakistan along with other controlled factors. The textile and apparel sector of Pakistan comprises 464 listed entities as the targeted population while the study randomly finalized 60 firms as the sample after carefully analyzing the required information from the financial statements during the annual revenue streams of 2013-2019. The predicted variable for this research enquiry is measured by short, long and total-debt ratios while the predictor variables include the business age, firm’s scale and risk. In addition, the research includes tax shield, tangibility, liquidity, profitability, and growth as the controlling factors. The study estimated that the choice of total-debt ratio is strongly affected by business age, size and risk along-with tax shield, tangibility, liquidity and profitability while the choice of short-term debt ratio mainly depends upon the firm’s scale and age along with the tax shield. In addition, the choice of long-term debt ratio is strongly explained by the firm’s scale and age along with the tax shield, liquidity and profitability. The estimated evidence provides management with the implications for the textile and apparel sector of Pakistan to consider as significant factors in deciding the debt financing choice of this sector. The estimated evidence of this research enquiry applies to the non-financial textile sector only and cannot be generalized to the financial sector. Future research may enhance the financing choice towards the inclusion of equity financing with the same set of variables.

show abstract

Is political risk a driver of listed SMEs leverage?

Papageorgiou

Savvakis

Kenourgios

2020

Applied Economics Letters

View full text Add to dashboard Cite

Firm size and debt maturity as indirect determinants of capital structure: evidence form European panel data

Cited by 11 publications

References 5 publications

Do Firm Characteristics Determine Capital Structure of Pakistan Listed Firms? A Quantile Regression Approach

Do Firm Characteristics Determine Capital Structure of Pakistan Listed Firms? A Quantile Regression Approach

Role of Business Age, Scale & Risk in Debt Financing Choices for the Pakistani Textile & Apparel Industry

Is political risk a driver of listed SMEs leverage?

Contact Info

Product

Resources

About