THE DETERMINANTS OF CAPITAL STRUCTURE OF LISTED FIRMS IN NIGERIA (Published)
The study is focused on the analysis of the determinants of capital structure of Nigeria companies for 2013. The cross-sectional least squares regression is applied to determine the impact of two independent variables on debt ratio. The independent variables are represented by company size and profitability. It is found that profitability is not a significant determinant and has a negative impact on leverage while the impact of company size was not confirmed in the model. The analysis of the determinants of corporate capital structure has valuable implications for finance managers who can make better capital structure decisions to maximise the wealth of the shareholders.
Keywords: Capital Structure, Firms in Nigeria
DETERMINANTS OF CAPITAL STRUCTURE (Published)
The main objectives of this empirical study are: to investigate which factors affect the textile firms of Pakistan and which type of capital structure theory does more prevail in textile sector of Pakistan. This empirical study is done by applying the panel data techniques in analyzing sample of 68 textile firms of Pakistan listed on Karachi Stock Exchange during 2006-2012. The determinants of this study like liquidity of firms, non debt tax shields like depreciation, more collateral net fixed assets, earnings volatility, size of firms, net commercial trade position and firms’ profits have impact on the capital structure choice.
Keywords: Capital Structure, Stock exchange and Pakistan, Textile firms
EFFECT OF COST OF CAPITAL AND CAPITAL STRUCTURE ON RETURNS: A CASE OF MOLOLINE SERVICE LIMITED IN NAKURU MUNICIPALITY, KENYA (Review Completed - Accepted)
Public transport in Kenya and, especially in urban areas, is dominated by Matatu vehicles. This venture involves substantial capital outlay and, therefore, requires sound financial management. A proper balance between return and risk should be maintained to maximize the market value of an investor. The current study investigated how cost of capital affected returns and the impact of capital structure on returns in the public service vehicle Matatu industry in Nakuru Municipality in Kenya. The findings indicated that most respondents preferred equity (μ = 4.25; SD = 0.907) to debt (μ = 3.47; SD = 1.030) as a source of capital. A major hindrance to the use of debt is its high cost. However, debt was invariably used because of its security and access. Capital structure consisted of shareholders and non-shareholders. In conclusion, MSL should seek alternative ways for members to access loans at lower rates; for instance entering into funding commitments with the financial institutions. Additionally, it should plan to access a wider pool of equity financing by listing in the capital markets
Keywords: Capital Structure, Kenya, Public transport; Matatu; Cost of Capital