Determinants of Capital Structure of Listed Companies in Bangladesh

Topics: Finance, Regression analysis, Scientific method Pages: 2 (333 words) Published: March 15, 2013
Title: Determinants of Capital Structure of Listed Companies in Bangladesh Content of the Report
1. Introduction
2. Objective
3. Literature Review and Hypotheses
There will be seven hypotheses for seven variables supported by prior literature and your arguments. For example: Hypotheses 1: There is an impact of assets structure on the capital structure of listed companies in Bangladesh.

4. Methodology
5.1 Sample
5.2 Data
5.3 Model and Variables
5. Findings
6.4 Impact of Capital Structure on Value
6.5 Impact of Dividend Policy on Value
6. Conclusion

Detail Description for “4.3 Model and Variables”
Capital Structure = f(Assets Structure, Company Size, growth, Profitability, Market Performance,) Model 1:
DR = α +β1AS+ β2 Growth1 + β3 Growth2 + β4 ROA + β5PM+ β6 TQ + β7CSIZ + Є Model 2:
SDR = α +β1AS+ β2 Growth1 + β3 Growth2 + β4 ROA + β5PM+ β6 TQ + β7CSIZ + Є Model 3:
LDR = α +β1AS+ β2 Growth1 + β3 Growth2 + β4 ROA + β5PM+ β6 TQ + β7CSIZ + Є

Table : Defining of Research Variables
Variable Label| Variables| Variable Definition| Predicted Sign| Dependent Variables: Capital Structure Measures|
DR| Debt Ratio| Total Liabilities/ Total Assets| +|
SDR| Short term debt ratio| Short Term Liabilities/Total Assets| +| LDR| Long term debt ratio| Long Term Debt/Total Assets| | Independent Variables|
AS| Assets Structure| Fixed Assets/Total Assets| +|
Growth 1| % Change in Sale (S)| (St –St-1 )/ St-1| +| Growth 2| % change in Total Assets (TA)| (TAt –TAt-1 )/ TAt-1| +/-| ROA| Return on Assets| Net Income After Tax/Total Assets| +/-| PM| Profit Margin| Operating Income/ Total Sale| |

TQ| Tobin’s Q| (Total Debt + *Market Capitalization)/ Total Assets*market price per share x total no. of share| +| CSIZ| Company Size| Log of total assets| +|
Є| Standard Sample Error| +/-|

Special Note:
Please see the excel file for the format of data...
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