Determinants of the Capital Structure of Ghanaian Firms
AbstractThis study compares the capital structures of publicly quoted firms, large unquoted firms, and small and medium enterprises (SMEs) in Ghana. Using a panel regression model, the paper also examines the determinants of capital structure decisions among the three sample groups. The results show that quoted and large unquoted firms exhibit significantly higher debt ratios than do SMEs. The results did not show significant difference between the capital structures of publicly quoted firms and large unquoted firms. The results reveal that short-term debt constitutes a relatively high proportion of total debt of all the sample groups. The regression results indicate that age of the firm,size of the firm, asset structure, profitability, risk and managerial ownership are important in influencing the capital structure decisions of Ghanaian firms. For the SME sample, it was found that factors such as the gender of the entrepreneur, export status, industry,location of the firm and form of business are also important in explaining the capitalstructure choice. The study provides useful recommendations for policy direction and management of these firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by African Economic Research Consortium in its series Research Papers with number RP_176.
Length: 46 pages
Date of creation: Mar 2008
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-AFR-2008-04-29 (Africa)
- NEP-ALL-2008-04-29 (All new papers)
- NEP-ENT-2008-04-29 (Entrepreneurship)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Chhapra, Imran Umer & Asim, Muhammad, 2012. "Determinants of capital structuring: an empirical study of growth and financing behavior of firms of textile sector in Pakistan," MPRA Paper 51068, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (winston wachanga).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.