Journal of Finance and Investment Analysis‚ vol.1‚ no.2‚ 2012‚ 61-81 ISSN: 2241-0988 (print version)‚ 2241-0996 (online) International Scientific Press‚ 2012 Topic: capital structure determinants of quoted firms in Nigeria and lessons for corporate financing decisions Michael Nwidobie Barine1 Abstract Financial arrangements determine how and the amount of financing that can be obtained from fund providers. An optimal allocation between equity and debt is determined by the trade-off between
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2 Determinants of capital structure In finance‚ capital structure refers to the way a corporation finances its assets through some combination of equity‚ debt‚ or hybrid securities. A firm ’s capital structure is then the composition or ’structure ’ of its liabilities. Simply‚ capital structure refers to the mix of debt and equity used by a firm in financing its assets. The capital structure decision is one of the most important decisions made by financial management. The capital structure decision
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“DETERMINANTS OF CAPITAL STRUCTURE IN PAKISTAN” Capital structure refers to the combination of asset financing from different available sources. Normally the companies have two choices‚ either to finance the assets from internal source that is termed as retained earnings or from external source that splits into debt and equity. A firm’s capital structure is than the composition of its liabilities. In reality‚ capital structure of firms may be highly complex and consist of number of sources. These
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UNIVERSITY On Capital Structure - Trends‚ Determinants & Issues in India with reference to banking sector: A case study of YES Bank. BY Shalini Shashidharan. M.Com. June 2013 Introduction – Background study The theory of capital structure is an important reference theory in any enterprise’s financing policy. The capital structure includes mixture of debt and equity financing and finding an optimal capital structure is one of the most important and
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CAPITAL STRUCTURE DETERMINANTS THE CASE OF THE KENYAN BANKING INDUSTRY TABLE OF CONTENTS 1. INTRODUCTION Capital structure refers to the mix of debt and equity which a firm uses to finance its operations. Many theories have been formulated with regard to whether there exists an optimal capital structure mix and the role the various determinants of capital structure play in deciding the mix. The Modern theory of capital structure began with Modigliani and Miller in 1958 (Harris
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Capital Structure Financial Seminar DFI 605 Group Members Nidhi Batta D61/79041/2012 Caleb Musau Kivuva D61/79601/2012 Tom Mbuya Odundo D61/78251/2012 CathrineWanjiku Kamau D61/60682/2013 Daniel Mwangi Mwaniki D61/84153/2012 Ndiangui James Wambugu D61/79627/2012 Submitted to: Mr. Mirie Mwangi September - December 2013 Submitted in partial fulfilment of the requirements of the Masters in Business Administration degree at the University of Nairobi.
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findings on the determinants of capital structure in plantations sector. Suggestion also include in this chapter for future research. 5.1 Conclusions This study examined the determinants of capital structure under plantations sector in Malaysia. It focused on plantation companies listed in main market of Bursa Malaysia during five years period from 2006 – 2010. The data is collected from companies’ annual reports. 200 observations has been done for 40 companies. The capital structure is determine
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CAPITAL STRUCTURE: MEANING: - Capital structure of a firm is a reflection of the overall investment and financing strategy of the firm. - Capital structure can be of various kinds as described below: ▪ Horizontal capital structure: the firm has zero debt component in the structure mix. Expansion of the firm takes through equity or retained earnings only. ▪ Vertical capital structure: the base of the structure is formed by a small amount
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Introduction Capital structure (CS) is one of the most important aspects of the Financial Management of any organization. It aims is to identify and implement the best capital structure proportion possible that suits the organizations needs and objectives. An optimal Capital structure boosts the prosperity of the company in the long run and reduces the risk. CS is a mixture of a company ’s current and non current debt‚ common and preferred equity. It ’s the way a company finances its functions
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Strategies Group January 2006 Corporate Capital Structure Authors Henri Servaes Professor of Finance London Business School The Theory and Practice of Corporate Capital Structure Peter Tufano Sylvan C. Coleman Professor of Financial Management Harvard Business School Editors James Ballingall Capital Structure and Risk Management Advisory Deutsche Bank +44 20 7547 6738 james.ballingall@db.com Adrian Crockett Head of Capital Structure and Risk Management Advisory‚ Europe & Asia
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