Comparative Study of Capital Structure Determinants in Selected Stock Exchanges of Developing Countries and Tehran Stock Exchange
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2014, Vol 4, Issue 1
Abstract
This paper studies determinants of capital structure in listed firms of selected stock exchanges of developing countries and Tehran stock exchange, and comprises effects of these determinants on selected stock exchanges with Iran. In this study, determinants of capital structure are studied in firm and country levels. In firm-level profitability, distance from bankruptcy, size and tangible assets, and in country level stock market development and GDP growth are studied. Data are collected from Compustat Global Vantage database, World Bank databases and Tadbirpardaz software. Panel Regression is used for analysis and Excel and EViews 6 and F and t test statistics are used. Results of study in level of developing countries show that except development of stock market, GDP growth and distance from bankruptcy, all variables have a significant relationship with capital structure; distance from bankruptcy and tangible assets on Tehran Stock Exchange have a significant relationship with capital structure. Impact of distance from of bankruptcy, size and tangible assets in Tehran Stock Exchange and selected developing countries stock exchanges capital structure are different. This paper enables to comparison, benchmarking, identifying strengths and weaknesses and its results can be used to determine strategies and objectives of firms financing.
Authors and Affiliations
Saeed Fathi, Farzaneh Ghandehari, Sayyed Ya’ghoub Shirangi
Keywords
Related Articles
- EP ID EP136399
- DOI 10.6007/IJARAFMS/v4-i1/541
- Views 99
- Downloads 0
Indonesia’s Participation in ASEAN Audit Regulators Group (AARG): Efficiency-driven or Institutional Pressure?
This paper takes institutional theory perspective to discuss the efforts being undertaken by regulators and accounting profession in Indonesia to strengthen its audit quality (AQ). The question being asked is whether Ind...
Intrinsic and Extrinsic Motivation as Attitude Factors towards Adoption of Accounting Information System (AIS) In Libyan SMEs
The Importance of Cost Calculation Method in the Accounting and Management of Turkish Operating Costs A Research within the Scope of TAS-2
International Tax Avoidance Schemes: An Investigation of Multinational Technology Companies
The opportunity to use tax havens leads to a decline in tax revenues of many resident countries of multinational technology companies. Several studies have proven that havens aid multinational technology companies to eng...
The Challenges for Establishing the Convergence of Accounting Reporting Among Different Countries
The purpose of this study is to exam the challenges for establishing the convergence of accounting reporting among different countries. The role and efforts by the International Financial Reporting Standards (IFRS), the...