Corporate Capital Structure Determinants: Evidence from Five African Countries
Using a panel of listed firms in Ghana, Kenya, Nigeria, South Africa and Zimbabwe, we investigate corporate capital structure in Africa, with emphasis on the extent to which firm characteristics and cross-country institutional differences determine the way firms raise capital. Results indicate that firms in Africa are about as leveraged as firms in emerging economies such as Mexico, Thailand, Brazil, South Korea, Malaysia and Turkey. African firms tend to rely heavily on internal finance, and where they use external finance, they choose mostly short-term debt to fund their production activity – indicating some support for the pecking-order postulate. Moreover, firms’ profitability, size, asset tangibility and age, relate significantly to leverage; thus suggesting that remedies for inadequate institutional infrastructures are important determinants of corporate capital structure in Africa.
Volume (Year): 11 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Web page: http://www.africagrowth.com/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:afj:journl:v:11:y:2009:i:1:p:1-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kirk De Doncker)The email address of this maintainer does not seem to be valid anymore. Please ask Kirk De Doncker to update the entry or send us the correct address
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.