Empirical Modelling of Capital Structure
- 21 April 2011
- journal article
- research article
- Published by SAGE Publications in Journal of Emerging Market Finance
- Vol. 10 (1), 1-19
- https://doi.org/10.1177/097265271101000101
Abstract
This article provides evidence about the determinants of capital structure in developing countries through studying non-financial Jordanian firms. We detect that capital structure choice in Jordan is influenced by similar set of factors suggested in the developed markets, namely, institutional ownership, profitability, business risk, asset tangibility, asset liquidity, market-to-book and firm size. The findings are consistent with the related studies in both developed and developing countries. In addition, we report that Jordanian firms have target capital structure ratios and that they adjust relatively quickly to their targets.Keywords
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