1 Deteminants Of Capital

Structure

DETERMINANTS OF CAPITAL STRUCTURE

Research Report

Fundamental Corporate Finance

Mam Yasmeen

Samiullah BBAF14E108

Abdul Mannan BBAF14E108

Abdullah Khan BBAF14E108
Department Of Business Administration
University Of Sargodha
 2 Deteminants Of Capital
Structure

Determinants of Capital Structure

INTRODUCTION
The Capital Structure of a company is a particular combination of Debt, Equity and other sources of
finance that it uses to fund its Long-Term Assets. The key division In Capital Structure is between
Debt and Equity. The proportion of debt funding is measured by Gearing or Leverages. There are
different factors that affect a firm's Capital Structure, and a firm should attempt to determine what
it’s optimal, or best, mix of financing. In corporate world discussion of the determinants of Capital
Structure is as old as the economic revolution of the world. The Capital Structure is decided on the
basis of some forces which are tangible as well is intangible in nature.
The relationship of the capital structure decisions with the firm performance was highlighted by a
number of theories mainly, the agency theory, information asymmetry theory, signaling theory and
the trade off theory. The most important among them is the agency problem that exists because
ownership (shareholders) and control (management) of firms lies with different people for most of
the firms. And for that reason, managers are not motivated to apply maximum efforts and are more
interested in personal gains or policies that suit their own interests and thus results in the loss of
value for the firm and harm shareholders interests. Therefore, debt finance act as a controlling tool
to restrict the opportunistic behavior for personal gain by managers. It reduces the free cash flows
with the firm by paying fixed interest payments and forces managers to avoid negative investments
and work in the interest of shareholders.
Decisions concerning capital structure are imperative for every business organization.
In the corporate form of business, generally it is the job of the management to make
capital structure decisions in a way that the firm value is maximized. However,
maximization of firm value is not an easy job because it involves the selection of debt and
equity securities in a balanced proportion keeping in view of different costs and benefits
coupled with these securities. A wrong decision in the selection process of securities may
lead the firm to financial distress and eventually to bankruptcy. The relationship
between capital structure decisions and firm value has been extensively investigated
in the past few decades.
The capital structure of a company is made up of debt and equity securities that comprise a firm’s
financing of its assets. It is the permanent source of financing for a firm which is represented by
long-term debt, preferred stock and net worth. Thus, it shows the capital arrangement which
excludes short-term borrowings.

Objectives of the Study

 3 Deteminants Of Capital
Structure

 To identify the Determinants of Capital Structure in the different sectors of Pakistan

Economy.
 To analyze which are the main determinants that influences the financing.
 Decision in the choice of Capital Structure in Pakistan Economy. To explain the
relationship between ROA ROE and the Determinants of Capital Structure.
 Structure in Pakistan Economy. To suggest some determinants which are of
considerable attention for Capital.
 The impact of independent variables on the dependent variables of the study would
be better
investigated by breaking the objectives across various models

Literature review:

Based on previous literature there are a lot of research papers who throw lights on the some
determinants of capital structure that affect the firm value. Some literature shows positive
relationship between the determinants of capital structure and firm’s value and some appose these
literatures and shows negative result means a negative relationship between determinants of
capital structure and value of firm.
Frank and Goyal (2009) described that financial leverage has eminent relationship with tangibility
and size of the firm that leads the growth. It elaborated the consequences that trade off theory
provided better approach to capital structure and command on these prominent factors which can
enhance profitability.

Shah and Hijazi (2004) found that large scale firms put their best exerts to take high level debt due
to its absorb strength regarding risk and bankruptcy.

As per Stewart (2000), when assets and cash flows not predicted then equity finance is better for
the investors for getting the enforceable rights to the firm’s assets. Therefore, it could prevent
insiders like managers or entrepreneurs to the participation of the outsider investors from
capturing cash flows.
According to Modoulge Frank, (2009), the coverage of interest plays a significant effect on ROA and
ROE. It is better opportunity for the listed companies to earn high level market capitalization which
positively influence on turnover of securities.Acaravci (2015) described the determinants of capital
structure for listed firms of different stock exchanges and elaborated that financial leverage is
supportive element for increasing the profit, size of the firms and tangibility. Moreover, the pecking
theory has a potential impact on capital structure firms that take over the interest of the equity
holders instead of collaborated interest of debt and equity holders (Titman &Tsyplakov 2005).
Gharaibeh (2015) contributed in study of this issue by conducting a research study on
17nonfinancial companies listed on Bahrain bourse. His study gives results that shows total liability
to assets ratio has significant positive impact on ROA and ROE that are representing firm’s
performance.
 4 Deteminants Of Capital
Structure

Capital structure and firms performance are correlated with each other. Capital structure has
positively significant impact on performance represented by ROA and ROE. This evidence was
created by conducting a study on 101 cement manufacturing firms of Pakistan (Asif & Aziz, 2016).
Modigliani & Miller (1958) propounded a conception of capital constitution, known as MM
conception, which states that there is not any premier capital structure considering that every
constitution is centered on distinctive assumptions like best a market, no taxes, and many others.
Administration of the undertaking didn't acquire the budgetary outcome. Although, the online
present value (NPV), inside price of Return (IRR) and advantage rate ratio indicates the project as
integral. Profitability will have to be re invested into the trade for its ‘survival (Velnampy, 2006).
Aliakbar, Seyed&Pejman (2013) additionally determined a colossal confident link between capital
structure and firm efficiency within the Tehran inventory trade.
Rouf (2015) in his research that was conducted on 106 listed non-manufacturing firms at Dhaka
stock Exchange (DSE) concluded that debt ratio and debt to equity ratio has significantly negative
impact on ROA and ROE. This shows that capital structure has negative impact on firm’s
performance.
There is importance evidence that was created by conducting a study on all listed firms at Nairobi
securities exchange. This evidence reflects that long term debt has positively significant impact on
firm’s performance while short term debt has negatively significant impact on firm’s performance
(Githire, 2015).
Riaz (2015) conducted a research study on 28 listed firms on KSE (Karachi stock exchange) and
concluded that the relationship in between ROA and TIE is positive as well as significant. However,
DER and LTDA have negative but insignificant influence on ROA.
There is another examines which concluded that, the affiliation between capital systems and each
ROA and ROE is bad and capital structure explains a bigger exchange in ROA than in ROE.
Furthermore, the relationship between capital structure and both ROA and ROE is terrible and
significant. Generally, observe concluded that capital shape is negatively and extensively associated
with monetary overall performance of firms listed on the RSE (Mauwa, Namusongeand, Onyango,
2016).

Variables
Financial Leverage:
The degree to which an investor or business is utilizing borrowed money.u Companies that are
highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt
they may also be unable to find new lenders in the future Financial leverage is not always bad,
however; it can increase the shareholders' return on investment and often there are tax advantages
associated with borrowing also called leverage.

Debt Ratio
Total debt ratio (TDR): Total debt ratio is a financial ratio that indicates the percentage of a
company's assets that are provided in comparison to debt. It is the ratio of total debt and total
assets calculated by dividing total debt to total assets.

(a)Long term debt ratio (LTDR):

 5 Deteminants Of Capital
Structure

The long term debt to total asset ratio, at the simplest, indicates the portion of a company's total
assets that is financed from long term debt. The value varies from industry to industry and company
to company. Comparing the ratio with industry peers is a better benchmark. Long term debt ratio is
computed as long term debt/total assets.

(b)Short term debt ratio (STDR):

Short term debt is an account shown in the current liabilities of a company's balance sheet. This
account is comprised of any debt or repayments incurred by a company that is due within one year.
The debt in this account is usually made up of short-term bank loans taken by a company. The ratio
is the calculation of debt payable within one year to total assets. The ratio indicates whether a firm
will be able to satisfy its immediate financial obligations. It is computed as short-term debt to total
assets.

Assets tangibility (TAN):

Asset tangibility refers to all types of tangible assets (e.g. land, building, machines and equipment)
that possess some degree of debt capacity. The formula used in this study to measure the value of
tangible assets of the firm is the ratio of net fixed assets to total assets. Rate in total gross assets.
The growth factor is measured by the percentage change of assets.

Return on Assets – ROA:

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at
using its assets to generate earnings. Return on assets is displayed as a percentage.

Return on equity (ROE):

Is the amount of net income returned as a percentage of shareholders equity. Return on

equity measures a corporation's profitability by revealing how much profit a company generates
with the money shareholders have invested.
In corporate finance, the return on equity (ROE) is a measure of the profitability of a business in
relation to the book value of shareholder equity, also known as net assets or assets minus
liabilities. ROE is a measure of how well a company uses investments to generate earnings growth.

Size (SIZE):
Large firms are often more diversified and have more stable cash flows; the probability of defaults
for large firms is smaller compared to smaller ones. Thus the financial distress risk can be
considered lower for larger firms. The measure of a firm's size used in this study is the natural
logarithm of its total assets.
 6 Deteminants Of Capital
Structure

Methodology :
Sample Set
This study makes use of secondary information, because of the foremost reason is to empirically
investigate the determinants of capital structure on efficiency of non-manufacturing firms in
Pakistan listed on Pakistan stock exchange for the interval 2011-2016. Secondary information is
defined as information that is already available i.e. It refer to the information which have already
been collected and analyzed by way of any individual else. Secondary data are ordinarily previous
data and should not have access to topics or respondents when you consider that it is already
assembled. The present information is bought from the annual stories and financial statements of
52 manufacturing firms listed on Pakistan Stock Exchange inventory alternate for the interval 2011-
2016.
Theoretical Framework
The study consists of following set of six variables to explore the determinants of the capital
structure. The study consists of two dependent variables are ROA and ROE and the four
independent variables are DEBT, LEVERAGE, SIZE and TANGIBILITY.

Research model

In depended
variables
Depended variables
DEBT

ROA
DETERMINANTS OF
CAPITAL STRUCTURE LEVERAGE

ROE
SIZE

TANGIBILITY
 7 Deteminants Of Capital
Structure

Hypothesis and Empirical Data Analysis

Population:
The main objective of this study is to meet the capital requirement of manufacturing firms. So the
population of this study is all manufacturing firms that are listed in PSE (Pakistan Stock Exchange).

Sampling:
Convenient sampling technique was used to generate sample. 52 manufacturing firms listed on PSE
(Pakistan Stock Exchange) were selected as sample units. The data used to complete the analysis
was collect from the annual reports of the companies listed in Pakistan stock exchange
(PSE) for the period of 2011-2016. These companies are publically listed firms. We collected data
from 52 companies and all companies were non-financial and manufacturing companies.

Data Collection:
Secondary data were used to complete the analysis. The data used to complete the analysis was
collect from the annual reports of the companies listed in Pakistan stock exchange (PSE) for the
period of 2011-2016. These companies are publically listed firms. We collected data from 52
companies and all companies were non-financial and manufacturing companies.

Research instruments:
Financial Statements are our research instruments. We used BSA (Balance Sheet analysis) of non-
financial manufacturing firms listed on PSE (Pakistan Stock Exchange) to collect the data that is
relevant to our research topic. It includes ratios like ROA, ROE and Debt ratio.

Data Analysis:
To analyze the data we used descriptive statistic, correlation and regression technique. Correlation
analysis is used to fine the relationship between dependent and independent variable. It tells us
that there is any relation exit between determinants of capital structure and firms value. Whereas
regression analysis is used to investigate the impact of determinants on firms value. It tells us there
is positive or negative significant relationship between determinants of capital structure and firms
value or not. And descriptive statistic is used to explain the distribution of data.

Dependant Variables:
ROA
 8 Deteminants Of Capital
Structure

ROE
Independent Variables
Debt
Leverage
Size
Tangibility

Hypothesis:
Our conceptual model of determinants of capital structure have developed from reviewing
literature includes Dependant variables ROA and ROE and independent variables Debt, Leverage,
Size, Tangibility and following hypothesis was generated from that literature.

H1: Debt has positive relation with ROA and insignificant.

H2: Leverage has negative relation with ROA and insignificant.
H3: Size has positive relation with ROA and insignificant.
H4: Tangibility has negative relation with ROA and insignificant.
H5: Debt has positive relation with ROE and significant.
H6: Leverage has positive relation with ROE and significant.
H7: Size has positive relation with ROE and insignificant.
H8: Tangibility has negative relation with ROE and significant

Descriptive statistics
Table 1 shows the summary of descriptive statistics. The descriptive statistics used to explain the
distribution of data. The mean return on assets is 6.03% and mean return on equity is 5.72%. The
average total debt ratio is 60.61% which tell us that more than 60% capital of the company is
consist of debt. The mean of Tangibility is 1.32% and the mean of size is 14.74%. The summary of
this result shows that the sample used in this analysis is compare able to the other Research
literature that also used Data of PSE listed firms.
 9 Deteminants Of Capital
Structure

Table#1

Mean 1,108,668
Total Debt
0.606117182
Leverage
6.038429487
ROA
5.721282051
ROE
14.74272312
Size
1.322943454
Tangibility
Medium 1108668 0.631164914 2.765 6.895 14.97148696 0.713378409

Mode 1108668 0.1092633 -6.56 -4.43 13.68921464 0.427812207

Maximum #REF! 2 179 2,455 19 18

Minimum 141,114,385 0 -28 -2,941 9 0
Std. Dev. 52,038 0.227307723 16.60712154 257.1263539 1.697428829 1.959331594
Skewness 5.608889771 0.337253967 4.085328191 -3.104794769 -0.481546 4.794042631

Correlation:
Total Debt Ratio shows a negative but weak relationship with firm’s value measured by ROA. But in
case of ROE the correlation is closely equal to zero. This shows that the relationship between the
firm’s performance and Debt ratio is very weak. Now turning second independent variable
Leverage. It has positive but weak relationship with ROA and negative relationship with ROE. Then
third independent variable Size. It also has positive but weak relationship with ROA and ROE.
Finally last independent variable is Tangibility. It has negative relationship both with ROA and ROE.

Total
Variable Debt Leverage ROA ROE Size Tangibility

Total Debt 1

Leverage 0.0658364 1
 10 Deteminants Of Capital
Structure

ROA 0.09588877 -0.263854 1

ROE 0.04245765 0.0309439 -0.285548 1

Size 0.44210103 -0.122181 0.2509445 0.117125 1

Tangibility 0.01957996 -0.008529 -0.241641 -0.04995 -0.2439943 1

Regression result when ROA is Dependent:

DEBT

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 Total Debtb . Enter

a. Dependent Variable: ROA

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .098a .010 .006 16.5534383

11 Deteminants Of Capital
Structure

a. Predictors: (Constant), Total Debt

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square
a. Dependent Variable: ROA
Regression 827.648 1 827.648 3.020 .083b
b. Predictors: (Constant), Total Debt
1 Residual 84945.059 310 274.016

Total 85772.707 311

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) 5.249 1.041 5.040 .000

1
Total Debt 1.135E-007 .000 .098 1.738 .083

a. Dependent Variable: ROA

LEVERAGE

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

a. Dependent
1 Variable:
leverage b
ROA . Enter

b. All requested variables entered.

12 Deteminants Of Capital
Structure

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .264a .070 .067 16.0444257

a. Predictors: (Constant), leverage

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 5971.393 1 5971.393 23.197 .000b

1 Residual 79801.314 310 257.424

Total 85772.707 311

a. Dependent Variable: ROA

b. Predictors: (Constant), leverage

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) 17.723 2.590 6.842 .000

1
leverage -19.277 4.002 -.264 -4.816 .000
13 Deteminants Of Capital
Structure

SIZE
a. Dependent Variable: ROA

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 size(fsize)b . Enter

a. Dependent Variable: ROA

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .251a .063 .060 16.1016259

a. Predictors: (Constant), size

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 5401.376 1 5401.376 20.834 .000b

1 Residual 80371.331 310 259.262

Total 85772.707 311

14 Deteminants Of Capital
Structure

a. Dependent Variable: ROA

b. Predictors: (Constant), size

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) -30.157 7.982 -3.778 .000

1
size(fsize) 2.455 .538 .251 4.564 .000

a. Dependent Variable: ROA

TANGIBILITY

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 Tangibilityb . Enter
a. Dependent Variable: ROA

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .242a .058 .055 16.1409537

15 Deteminants Of Capital
Structure

a. Predictors: (Constant), Tangibility

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 5008.287 1 5008.287 19.223 .000b

1 Residual 80764.420 310 260.530

Total 85772.707 311

a. Dependent Variable: ROA

b. Predictors: (Constant), Tangibility

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) 8.748 1.103 7.930 .000

1
Tangibility -2.048 .467 -.242 -4.384 .000

a. Dependent Variable: ROA

Regression result when ROE is Dependent:

DEBT
16 Deteminants Of Capital
Structure

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 Total Debtb . Enter

a. Dependent Variable: ROE

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .041a .002 -.002 257.3206478

a. Predictors: (Constant), Total Debt

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 35128.253 1 35128.253 .531 .467b

20526313.88
Residual 310 66213.916
1 7

20561442.14
Total 311
0

a. Dependent Variable: ROE

17 Deteminants Of Capital
Structure

b. Predictors: (Constant), Total Debt

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) .577 16.190 .036 .972

1
Total Debt 7.392E-007 .000 .041 .728 .467

a. Dependent Variable: ROE

Leverage

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 leverageb . Enter

a. Dependent Variable: ROE

b. All requested variables entered.

Model Summary
18 Deteminants Of Capital
Structure

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .031a .001 -.002 257.4174099

a. Predictors: (Constant), leverage

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

Regression 19688.032 1 19688.032 .297 .586b

20541754.10
Residual 310 66263.723
1 8

20561442.14
Total 311
0

a. Dependent Variable: ROE

b. Predictors: (Constant), leverage

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) -15.495 41.561 -.373 .710

1
leverage 35.003 64.216 .031 .545 .586
19 Deteminants Of Capital
Structure

a. Dependent Variable: ROE

Size

Variables Entered/Removeda

Model Variables Variables Method

Entered Removed

1 Size . Enter

a. Dependent Variable: ROE

b. All requested variables entered.

Model Summary

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .117a .014 .011 255.7681478

a. Predictors: (Constant), size(fsize)

ANOVAa

Model Sum of Df Mean F Sig.

Squares Square

1 Regression 282065.060 1 282065.060 4.312 .039b

Residual 20279377.080 310 65417.345

20 Deteminants Of Capital
Structure

Total 20561442.140 311

a. Dependent Variable: ROE

b. Predictors: (Constant), size(fsize)

Coefficientsa

Model Unstandardized Standardized t Sig.

Coefficients Coefficients

B Std. Error Beta

(Constant) -255.844 126.795 -2.018 .044

1
size(fsize) 17.742 8.544 .117 2.076 .039

a. Dependent Variable: ROE

Results and findings:

Total Debt Ratio shows a negative but weak relationship with firm’s value measured by ROA. But in
case of ROE the correlation is closely equal to zero. This shows that the relationship between the
firm’s performance and Debt ratio is very weak. Now turning second independent variable
Leverage. It has positive but weak relationship with ROA and negative relationship with ROE. Then
third independent variable Size. It also has positive but weak relationship with ROA and ROE.
Finally last independent variable is Tangibility. It has negative relationship both with ROA and ROE.
The other one is Regression analysis that shows there is insignificance relation between ROA with
Debt, Leverage, Size and Tangibility. With relationship between ROE and Size is insignificance and
relationship between ROE with Debt, Tangibility and Leverage is significant.

Conclusion:
21 Deteminants Of Capital
Structure

The main objective of this literature is to investigate the determinants of Capital structure decision
on the firm’s value. We used two proxies ROA and ROE to measure the firm’s value. After analyzing
data collected by 52 non-manufacturing firms we concluded that there is significant relationship
between the ROA and the Debt ratio and there is no significant relationship between the ROE and
the Debt Ratio. This shows that Debt and leverage are much related to the ROA and ROE. Packing
order theory is also describing the negative relationship between ROE and Debt Ratio. Murray Z.
Frank and Vidhan (2005) describe the packing order theory in their research. This article shows
that there is negative relationship and negative impact of Debt Ratio on ROE (Frank, Murray
&vidhan, 2005). There is recommendation for manager to keep more ratio of debt in their
determinants of capital structure. This will help them to reduce capital cost and enhance firm’s
value.

Limitations:
Only listed firms at PSE (Pakistan Stock Exchange) were used as a study of entire population, thus
other firm with different characteristics which could provide different result was not considered.
Time and finance were also limiting factors. It was highly time consuming to collect data.

References
Thippayana , P. (2014). Determinants of Capital Structure in Thailand * School of Management,
Walailak University, Thailand. Procedia - Social and Behavioral Sciences 143 ( 2014 ) 1074 – 1077
Serghiescua , L. Ligia Vaă ideanb,V. (2014).Determinant factors of the capital structure of a firm- an
empirical analysis, Bolyai University, Teodor Mihali 58-60, 400591 Cluj Napoca, Romania .Procedia
Economics and Finance 15 ( 2014 ) 1447 – 1457
GUNERA, A. (2015)The Determinants of Capital Structure Decisions: New Evidence from Turkish
Companies Istanbul Conference of Economics and Finance, ICEF 2015, 22-23 October 2015,
Istanbul, Turkey. Economics and Finance 38 ( 2016 ) 84 – 89
Hijaz, S . T., Bin Tariq , Y. (2006)Determinants of Capital Structure: A Case for the Pakistani Cement
Industry, The Lahore Journal of Economics 11 : 1 (Summer 2006) pp. 63-80
BAUER, P . (2014).Determinants of Capital Structure Empirical Evidence from the Czech Republic,
Finance a uú vuû r – Czech Journal of Economics and Finance, 54, 2004, aã . 1-2
ACARAVCI, S . K. (2015). The Determinants of Capital Structure: Evidence from the Turkish
Manufacturing Sector Faculty of Economics and Administrative Sciences, Department of Finance,
Mustafa Kemal University, Antakya-Hatay, Turkey. ISSN: 2146-4138
Deesomsak , R. Paudyal , K. Pescetto, G. (2004).The Determinants of Capital Structure: Evidence
from the Asia Pacific Region, Centre for Empirical Research in Finance, Durham Business School,
University of Durham, Mill Hill Lane, Durham DH1 3LB, UK.
Shah , A. Khan , S. (2007).Determinants of Capital Structure: Evidence from Pakistani Panel Data,
International Review of Business Research Papers Vol. 3 No.4 October 2007 Pp.265-282
Abbas, M.(2016).Determinants of Capital Structure: Empirical evidence from listed firms in Norway,
Masteroppgave i Økonomi og administrasjon Handelshøyskolen ved HiOA.
22 Deteminants Of Capital
Structure

Akhtar , P., Husnain , M., Mukhtar , A.The Determinants of Capital Structure: A Case from Pakistan
Textile Sector (Spinning Units), National University Of Modern Languages, Islamabad .University Of
Agriculture Faisalabad ,Muhammad Ali Jinnah University, Islamabad ,Proceedings of 2nd
International Conference on Business Management (ISBN: 978-969-9368-06-6)

Modoulge Frank, (2009), Problems In The Theory Of Optimal Capital Structure, Journal Of
Financial And Quantitative Analysis, Vol. 1, Pp.1-20.
Shah ,Hijazi T (2004), The Theory Of Capital Structure, Journal Of Finance, Vol. 46, Pp. 297-355
Stwert H (2000), Capital Structure determinants and their role for growth of the firms, Journal
Of Economic Perspectives, Vol. 15, No. 2, Pp 8-12.
Vaă tavu, S. (2015). The Impact of Capital Structure on Financial Performance in Romanian Listed
Companies. Procedia Economics and Finance, 32, 1314-1322.
NaimNasimi, A. (2016). Effect of Capital Structure on Firm Profitability (An Empirical Evidence from
London, UK). Global Journal of Management and Business Research, 16(4).
Gharaibeh, A. M. (2015). The Effect of Capital Structure on the Financial Performance of Listed
Companies in Bahrain Bourse. Journal of Finance and Accounting, 3(3), 50-60.
Asif, A., & Aziz, B. Impact of Capital Structure on Firm Value Creation-Evidence from the Cement
Sector of Pakistan.
Rouf, D., &Abdur, M. (2015). Capital structure and firm performance of listed non-financial
companies in Bangladesh. Browser Download This Paper.