Record Details

DYNAMIC CAPITAL STRUCTURE: EVIDENCE FROM THE SMALL DEVELOPING COUNTRY OF JORDAN

International Journal of Economics, Management and Accounting

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Field Value
 
Title DYNAMIC CAPITAL STRUCTURE: EVIDENCE FROM THE SMALL DEVELOPING COUNTRY OF JORDAN
 
Creator Maghyereh, Aktham
 
Description This paper examines the determinants of the target capital structure of Jordanian manufacturing firms and the adjustment process towards this target. The study extends the empirical work on capital structure in two ways. First, it uses a dynamic model which sheds light on the dynamic nature of the capital structure adjustment process by firms. Second, the study employs a panel data analysis and GMM estimation techniques that control for unobserved firm-specific effects and the endogeneity problem. The findings of the paper suggest that Jordanian firms have target leverage ratios and they adjust to them relatively fast. Consistent with the predictions of capital structure theories, and the findings of the empirical literature, the results of this paper suggest that size, tangibility, profitability, growth opportunity, and earnings volatility exert significant effects on the capital structure choice of Jordanian firms.JEL classification: G3, G32, C33Key words: Dynamic capital structure, Asset tangibility, GMM estimation
 
Publisher Kulliyyah of Economics and Management Sciences
 
Date 2013-03-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/105
 
Source International Journal of Economics, Management and Accounting; Vol 13 No 1 (2005)
2462-1420
 
Language eng
 
Relation http://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/105/88