Empirical Modelling of Capital Structure: Jordanian Evidence

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Abstract

This article provides evidence about the determinants of capital structure in developing countries through studying non-financial Jordanian firms. We detect that capital structure choice in Jordan is influenced by similar set of factors suggested in the developed markets, namely, institutional ownership, profitability, business risk, asset tangibility, asset liquidity, market-to-book and firm size. The findings are consistent with the related studies in both developed and developing countries. In addition, we report that Jordanian firms have target capital structure ratios and that they adjust relatively quickly to their targets.
Original languageEnglish
Number of pages19
JournalJournal of Emerging Market Finance
Volume10
Issue number1
DOIs
Publication statusPublished - 1 Apr 2011
Externally publishedYes

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