An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country

An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country

Alamgir Hossain Lecturer

Contact

Abdullah Al Yousuf Khan

Contact

M. Saifullah Khalid

Contact

to International University of Business Agriculture and Technology

An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country

Article Fingerprint

ReserarchID

C: FINANCE2F429

An Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country Banner

AI TAKEAWAY

Connecting with the Eternal Ground

Abstract

This paper aims to empirically study the relationship between capital structure and firm’s financial performance in a developing country like Bangladesh. The investigation has been conducted through using panel data procedure for a sample of Dhaka stock market enlisted all IT firms during the year of 2013-2017. This research works have been performed through the three performance measures including return on equity, return on asset, and earnings per share as dependent variables, where capital structure is considered as debt ratio (DR), equity ratio (ER), long-term debt ratio (LTDR), short-term debt ratio (STDR) and used as independent variables. However, descriptive statistics, correlation, pooled ordinary least square analysis, fixed effect and Random effect model has been analyzed to find the relationship between capital structure and financial performance.

References

32 Cites in Article

Reference Format

J Abor (2005). The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana.
Khairul Alom (2013). Capital Structure Choice of Bangladeshi Firms: An Empirical Investigation.
S Amin,M Hossain (2013). Capital Structure and Firm Performance: Evidence from Commercial Banks in Bangladesh.
S Amin,T Jamil (2015). Capital Structure and Firm Performance: Evidence from Cement Sector of Dhaka Stock Exchange Limited.
Zahid Anowar (2016). Capital Structure and Profitability of Bangladeshi Firms: A Causal Investigation.
Anup Chowdhury,Suman Paul Chowdhury (2010). Impact of capital structure on firm’s value: Evidence from Bangladesh.
Md. Hasan,A Ahsan,Md. Rahaman,Md. Alam (2014). Influence of Capital Structure on Firm Performance: Evidence from Bangladesh.
I Hossain (2016). Effects of Capital Structure and Managerial Ownership on Profitability: Experience from Bangladesh.
T Javed,W Younas,M Imran (2014). Impact of capital structure on firm performance: Evidence from Pakistani firms.
S Koech (2013). Effect of Financial Leverage on Profitability of Firms Listed in the Nairobi Securities Exchange.
Julia Koralun-Bereźnicka (2014). On the Relative Importance of Corporate Working Capital Determinants: Findings from the EU Countries.
S Nassar (2016). The impact of capital structure on Financial Performance of the firms: Evidence from Borsa Istanbul.
B Nouri,F Bagheri,A Fathi (2016). Comparison of Working Capital Management, Capital Structure and Real Investment Policies among Active and Bankrupt Firms in Tehran Stock Exchange.
D Rouf,M Abdur (2015). Capital structure and firm performance of listed non-financial companies in Bangladesh.
Mahfuzah Salim,Raj Yadav (2012). Capital Structure and Firm Performance: Evidence from Malaysian Listed Companies.
M Siddik,Sajal Kabiraj,Shanmugan Joghee (2017). Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh.
(2018). Pearson's Correlation Coefficient -Statistics Solutions.
J Van Horne,J Wachowicz (2000). Fundamentals of financial management.
S Vătavu (2015). The impact of capital structure on financial performance in Romanian listed companies.
J Weston,E Brigham (1979). Managerial finance.
S Huang,F Song (2006). The determinants of capital structure: evidence from China.
King_M Santor_E (2008). Family Values: Ownership Structure, Performance and Capital Structure of Canadian Firms.
R Salawu (2009). Effect of Capital Structure on the Profitability of Listed Insurance Firms in Nigeria.
F Modigliani,M Miller (1958). The cost of capital, corporation finance and the theory of investment.
I El-Sayed Ebaid (2009). The impact of capital‐structure choice on firm performance: empirical evidence from Egypt.
F Memon,N Bhutto,G Abbas (2012). Capital structure and firm performance: A case of textile sector of Pakistan.
Y Önel,P Gansuwan (2012). The Influence of Capital Structure on Firm Performance: A quantitative study of Swedish listed firms.
Laura Serghiescu,Viorela-Ligia Văidean (2014). Determinant Factors of the Capital Structure of a Firm- an Empirical Analysis.
Philip Arestis,Ambika Luintel,Kul Luintel (2004). Does Financial Structure Matter?.
Kwanum Iorpev (2012). Capital Structure and Firm Performance: Evidence from Manufacturing Companies in Nigeria.
Saibal Ghosh (2007). Leverage, managerial monitoring and firm valuation: A simultaneous equation approach.
Murray Frank,Vidhan Goyal (2008). Trade-Off and Pecking Order Theories of Debt.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Alamgir Hossain. 2019. \u201cAn Empirical Analysis of Capital Structure and Firm’s Financial Performance in a Developing Country\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 19 (GJMBR Volume 19 Issue C3).

More Citation Formats

Select Citation Style:

Download Citation

GJMBR Volume 19 Issue C3

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

Not Found

Classification

GJMBR-C Classification JEL Code: F65

Submission ReceivedDecember 11, 2018
Peer Review Double Blind
Handling Editor
Accepted January 5, 2019
Published January 15, 2019

Version of record

v1.2

Issue date

April 15, 2019

Language

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Score: 103

Country: Unknown

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Alamgir Hossain, Abdullah Al Yousuf Khan, M. Saifullah Khalid (PhD/Dr. count: 0)

View Count (all-time): 180

Total Views (Real + Logic): 2750

Total Downloads (simulated): 1415

Publish Date: 2019 04, Mon

Monthly Totals (Real + Logic):

Month 1: 54 views
Month 2: 36 views
Month 3: 37 views
Month 4: 54 views
Month 5: 46 views
Month 6: 20 views
Month 7: 27 views
Month 8: 24 views
Month 9: 35 views
Month 10: 20 views
Month 11: 38 views
Month 12: 31 views
Month 13: 30 views
Month 14: 23 views
Month 15: 28 views
Month 16: 20 views
Month 17: 33 views
Month 18: 26 views
Month 19: 42 views
Month 20: 21 views
Month 21: 17 views
Month 22: 17 views
Month 23: 32 views
Month 24: 32 views
Month 25: 21 views
Month 26: 35 views
Month 27: 18 views
Month 28: 34 views
Month 29: 16 views
Month 30: 41 views
Month 31: 35 views
Month 32: 18 views
Month 33: 24 views
Month 34: 36 views
Month 35: 22 views
Month 36: 17 views
Month 37: 27 views
Month 38: 36 views
Month 39: 39 views
Month 40: 33 views
Month 41: 24 views
Month 42: 43 views
Month 43: 23 views
Month 44: 46 views
Month 45: 45 views
Month 46: 22 views
Month 47: 34 views
Month 48: 43 views
Month 49: 23 views
Month 50: 45 views
Month 51: 34 views
Month 52: 11 views
Month 53: 40 views
Month 54: 40 views
Month 55: 18 views
Month 56: 20 views
Month 57: 25 views
Month 58: 33 views
Month 59: 30 views
Month 60: 28 views
Month 61: 37 views
Month 62: 34 views
Month 63: 46 views
Month 64: 28 views
Month 65: 44 views
Month 66: 47 views
Month 67: 40 views
Month 68: 42 views
Month 69: 21 views
Month 70: 30 views
Month 71: 35 views
Month 72: 27 views
Month 73: 30 views
Month 74: 26 views
Month 75: 26 views
Month 76: 39 views
Month 77: 30 views
Month 78: 28 views
Month 79: 24 views
Month 80: 15 views
Month 81: 23 views
Month 82: 31 views
Month 83: 39 views
Month 84: 44 views
Month 85: 19 views

Total Views: 2750

Total Downloads: 1415

2026 Trends

Our website is actively being updated, and changes may occur frequently. Please clear your browser cache if needed. For feedback or error reporting, please email [email protected]