Empirical Modelling of Capital Structure

Jordanian Evidence

Research output: Contribution to journalArticle

9 Citations (Scopus)

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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Capital structure
Empirical modeling
Assets
Developing countries
Book-to-market
Business risk
Jordan
Profitability
Firm size
Institutional ownership
Developed countries
Market liquidity
Factors

Cite this

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title = "Empirical Modelling of Capital Structure: Jordanian Evidence",
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.",
keywords = "JEL Classification: G32 , JEL Classification: C33 , Capital structure , target, determinants , panel data, partial adjustment model",
author = "Basil Al-Najjar",
year = "2011",
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language = "English",
volume = "10",
journal = "Journal of Emerging Market Finance",
issn = "0972-6527",
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number = "1",

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Empirical Modelling of Capital Structure : Jordanian Evidence. / Al-Najjar, Basil.

In: Journal of Emerging Market Finance, Vol. 10, No. 1, 01.04.2011.

Research output: Contribution to journalArticle

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T1 - Empirical Modelling of Capital Structure

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AU - Al-Najjar, Basil

PY - 2011/4/1

Y1 - 2011/4/1

N2 - 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.

AB - 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.

KW - JEL Classification: G32

KW - JEL Classification: C33

KW - Capital structure

KW - target

KW - determinants

KW - panel data

KW - partial adjustment model

U2 - 10.1177/097265271101000101

DO - 10.1177/097265271101000101

M3 - Article

VL - 10

JO - Journal of Emerging Market Finance

JF - Journal of Emerging Market Finance

SN - 0972-6527

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