THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS By WESLEY NAIDU Submitted in partial fulfillment of the requirements for the degree MAGISTER COMMERCII in FINANCIAL MANAGEMENT SCIENCES In the FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES At the UNIVERSITY OF PRETORIA SUPERVISOR: Prof. JOHANNES HvH DE WET November 2011 -i- ABSTRACT The topic of capital structure has been one that has plagued the academic world for a number of years
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managementjournal.info RESEARCH ARTICLE An Empirical Analysis of Capital Structure on Firms’ Performance in Nigeria Taiwo Adewale Muritala* Department of Economics and Financial Studies‚ Fountain University Osogbo‚ Osun State‚ Nigeria. *Correspondence E-mail: muritaiwo@yahoo.com Abstract This paper examines the optimum level of capital structure through which a firm can increase its financial performance using annual data of ten firms spanning a five-year period. The results from Im‚ Pesaran & Shine
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African Journal of Business Management Vol. 5(15)‚ pp. 6527-6540‚ 4 August‚ 2011 Available online at http://www.academicjournals.org/AJBM DOI: 10.5897/AJBM11.1012 ISSN 1993-8233 ©2011 Academic Journals Full Length Research Paper Capital structure and financing decision - Evidence from the four Asian Tigers and Japan Kuang-Hua Hsu1* and Ching-Yu Hsu2 1 Department of Finance‚ Chaoyang University of Technology‚ Taiwan‚ Republic of China 168 Jifong E. Road.‚ Wufong District‚ Taichung
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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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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 by debt
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we will explain capital structure and determine weighted average cost of capital (WACC) from the assumption provided by Mary Francis. Furthermore‚ we will show how WACC and Capital Structure can be leveraged to find out the viability of the capital project. Additionally‚ we will explain marginal cost of capital. To close‚ we will make a recommendation on the best approach to apply to project evaluation between capital structure and WACC Capital Structure Capital Structure refers to the sources
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A review of capital structure theories 1.0 Introduction One of the most contentious financial issues that have provoked intense academic research during the last decades is the theory of capital structure. Capital structure can be defined as a ’Mix of different securities issued by a firm’ (Brealey and Myers‚ 2003). Simply speaking‚ capital structure mainly contains two elements‚ debt and equity. In 1958‚ through combining tax and debt factors in a simple model to price the value of a company‚
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Assignment 1. Some of the key trends in the capital structure of India Inc. are as follows: Key observations: * Indian corporate employ substantial amount of debt in their capital structure in terms of the debt-equity ratio as well as total debt to total assets ratio. * As a result of debt-dominated capital structure‚ the Indian corporate are exposed to a very high degree of total risk as reflected in high degree of operating leverage and financial leverage and‚ consequently‚ are
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Introduction The context of this paper is to investigate the relationship between capital structure and firm performance on Malaysia plantations industries. According to Brealey and Myers (1988)‚ the capital structure will determine the survival of a business. Damodaran (2001) defined capital structure as the mix of debt and equity used to finance the operation of firms. Capital structure is closed link with corporate performance (Tian and Zeitun‚ 2007). Corporate performance can be measured by
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important questions‚ including; What long-term investments should the firm undertake (capital budgeting) and how will investment and finance decisions affect the firm ’s value (valuation)? How can cash be raised for the required investments? This is known as the financing decision ’ (cost of capital‚ capital structure and leasing). How will the firm manage its day-to-day cash and financial affairs (short-term financing and net working capital)? The Capital Budgeting Mini Case presents a
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