Impact of Firm Level Factors on Capital Structure: Evidence from Ethiopian Insurance Companies

Article ID

C: FINANCE3U02C

Impact of Firm Level Factors on Capital Structure: Evidence from Ethiopian Insurance Companies

Mr. Bayeh Asnakew Kinde
Mr. Bayeh Asnakew Kinde University of Gondar
DOI

Abstract

The purpose of this study is to investigate important firm-level determinants of capital structure on Ethiopian insurance companies. The study employs panel regression model. The results show that growth, profitability and age of the firm were found to have significant influence on Ethiopian insurance companies’ capital structure. Liquidity and business risk were also significant for long term debt and total debt ratio respectively. However, among the hypothesized capital structure determinants asset tangibility and size of the firm were found to have statistically insignificant contribution on capital structure of Ethiopian insurance companies.

Impact of Firm Level Factors on Capital Structure: Evidence from Ethiopian Insurance Companies

The purpose of this study is to investigate important firm-level determinants of capital structure on Ethiopian insurance companies. The study employs panel regression model. The results show that growth, profitability and age of the firm were found to have significant influence on Ethiopian insurance companies’ capital structure. Liquidity and business risk were also significant for long term debt and total debt ratio respectively. However, among the hypothesized capital structure determinants asset tangibility and size of the firm were found to have statistically insignificant contribution on capital structure of Ethiopian insurance companies.

Mr. Bayeh Asnakew Kinde
Mr. Bayeh Asnakew Kinde University of Gondar

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Mr. Bayeh Asnakew Kinde. 2013. “. Global Journal of Management and Business Research – C: Finance GJMBR-C Volume 13 (GJMBR Volume 13 Issue C4): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR Volume 13 Issue C4
Pg. 23- 30
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Impact of Firm Level Factors on Capital Structure: Evidence from Ethiopian Insurance Companies

Mr. Bayeh Asnakew Kinde
Mr. Bayeh Asnakew Kinde University of Gondar

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