Dynamism of capital structure: Evidence from Pakistan
This study investigates the existence of target capital structure and estimates speed of adjustment towards target capital structure for the non financial listed firms of Pakistan. The study also examines the firm level and macroeconomic factors determining the target capital structure.This study im...
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2015
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my.uum.repo.154052020-11-04T01:58:43Z http://repo.uum.edu.my/15405/ Dynamism of capital structure: Evidence from Pakistan Memon, Pervaiz A. Md Rus, Rohani Ghazali, Zahiruddin HD28 Management. Industrial Management This study investigates the existence of target capital structure and estimates speed of adjustment towards target capital structure for the non financial listed firms of Pakistan. The study also examines the firm level and macroeconomic factors determining the target capital structure.This study implies the dynamic panel data modeling using partial adjustment model.The study uses the Generalized Method of Moments (GMM) as the estimation technique. Firms in Pakistan are found to chase target debt ratios and make complete adjustment towards target in less than two years.Two firm level significant determinants of the target capital structure are profitability and tangibility.Macroeconomic factors such as GDP growth rate, inflation and interest rates are also found as the significant determinants of target debt. American Research Institute for Policy Development 2015 Article PeerReviewed application/pdf en http://repo.uum.edu.my/15405/1/7.pdf Memon, Pervaiz A. and Md Rus, Rohani and Ghazali, Zahiruddin (2015) Dynamism of capital structure: Evidence from Pakistan. Journal of International Business and Economics, 3 (1). pp. 52-63. ISSN 23742208 http://doi.org/10.15640/jibe.v3n1a7 doi:10.15640/jibe.v3n1a7 |
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HD28 Management. Industrial Management Memon, Pervaiz A. Md Rus, Rohani Ghazali, Zahiruddin Dynamism of capital structure: Evidence from Pakistan |
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This study investigates the existence of target capital structure and estimates speed of adjustment towards target capital structure for the non financial listed firms of Pakistan. The study also examines the firm level and macroeconomic factors determining the target capital structure.This study implies the dynamic panel data modeling using partial adjustment model.The study uses the Generalized Method of Moments (GMM) as the estimation technique. Firms in Pakistan are found to chase target debt ratios and make complete adjustment towards target in less than two years.Two firm level significant determinants of the target capital structure are profitability and tangibility.Macroeconomic factors such as GDP growth rate, inflation and
interest rates are also found as the significant determinants of target debt. |
format |
Article |
author |
Memon, Pervaiz A. Md Rus, Rohani Ghazali, Zahiruddin |
author_facet |
Memon, Pervaiz A. Md Rus, Rohani Ghazali, Zahiruddin |
author_sort |
Memon, Pervaiz A. |
title |
Dynamism of capital structure: Evidence from Pakistan |
title_short |
Dynamism of capital structure: Evidence from Pakistan |
title_full |
Dynamism of capital structure: Evidence from Pakistan |
title_fullStr |
Dynamism of capital structure: Evidence from Pakistan |
title_full_unstemmed |
Dynamism of capital structure: Evidence from Pakistan |
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dynamism of capital structure: evidence from pakistan |
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American Research Institute for Policy Development |
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2015 |
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http://repo.uum.edu.my/15405/1/7.pdf http://repo.uum.edu.my/15405/ http://doi.org/10.15640/jibe.v3n1a7 |
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