Financing Policy of Ethiopian Manufacturing Firms

Hamdu Kedir Mohammed

Financing Policy of Ethiopian Manufacturing Firms

Hamdu Kedir Mohammed * §

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§ Jimma University

Financing Policy of Ethiopian Manufacturing Firms

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Abstract

The aim of this study is to explore factors that affect the capital structure of manufacturing firms with the absence of secondary market and to investigate whether the capital structure models derived from Western settings provide some convincing explanation for capital structure decisions of Ethiopian firms. Theories of capital structure are reviewed in order to formulate testable factors concerning the determinants of capital structure of the manufacturing firms. The investigation is performed using panel data procedures for a sample of 32 firms during 2006-2010 G.C. Profitability as measured by return on asset, tangibility and the business risk level of firm are found to be significant determinant factors of capital structure.

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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

Hamdu Mohammed. 2015. "Financing Policy of Ethiopian Manufacturing Firms". Global Journal of Management and Business Research, Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C5).

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GJMBR Volume 15 Issue C5

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

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Classification

GJMBR-C Classification JEL Code: G32

Submission ReceivedFebruary 3, 2015
Peer Review Double Blind
Handling Editor
Accepted March 3, 2015
Published March 15, 2015

Version of record

v1.2

Issue date

July 3, 2015

Language

English

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Article Matrices

Total Score: 120

Country: Ethiopia

Subject: Global Journal of Management and Business Research

Authors: Hamdu Kedir Mohammed, Sabir Fayso Abdullahi,Yonas Mekonnen Wetere (PhD/Dr. count: 0)

View Count (all-time): 316

Total Views (Real + Logic): 1653

Total Downloads (simulated): 91

Publish Date: 2015 03, Sun

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Total Views: 1.7K

Total Downloads: 91

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