The nexus between capital structure and bank’s specific factors a case of listed banks in Tanzania

Abstract

This study aims to examine the influence of bank-specific factors namely taxation, asset tangibility, profitability, and bank size on listed banks capital structure in Tanzania from 2016 to 2020. The study used an explanatory research design to determine the cause and effect relationship between the response variable and the four explanatory variables of Tanzanian listed banks. The study's population included all of the DSE's listed banks, with the researcher sampling seven of them. The test of multiple linear regression was carried out and findings revealed the capital structure of listed banks in Tanzania are affected by asset tangibility and tax as these two explanatory variables were significant at 5% level. However, the study reveals that profitability and bank size has no statistically significant impact on the capital structure of listed banks in Tanzania. This study is limited to seven listed banks at the Dar es Salaam Stock of Exchange (DSE) over a five-year period (2016 to 2020). The researcher makes several recommendations based on this premise. First, additional research should be conducted on other banks that are not listed at DSE. Second, other explanatory variables such as liquidity position, bank age, and sales growth potentials, to name a few, can be used. Third, the scope of the study can be expanded in terms of sampled units and time period covered. Lastly, listed banks should give consideration to tax and asset tangibility when in determining their optimal capital structure.

Faktor Faktor Yang Mempengaruhi Capital Structure Pada Bank Konvensional Yang Terdaftar Di Bei

“…ROA dapat menunjukkan betapa terampilnya manajemen bank dalam mengkonversikan aset bank menjadi laba bersih (Karadayi, 2023). Tangibility Magoma, Mbwambo, & Dobogo (2022) dalam penelitian nya mendefinisikan tangibility sebagai proporsi aset tetap terhadap total aset. Tangibility dapat digunakan untuk melaporkan kekuatan sebuah perusahaan (Shahi & Agnihotri, 2022).…”