EFFECT OF MACROECONOMIC FACTORS ON CAPITAL STRUCTURE OF FIRMS IN DEVELOPING AFRICA: A TWO-STEP GMM APPROACH
Journal Title: Gusau Journal of Accounting and Finance - Year 2020, Vol 1, Issue 1
Abstract
The study examines the effects of macroeconomic factors and on capital structure of non- financial firms in Africa. Using a recent data for an advanced dynamic model (2step system generalized methods of moment (GMM)) technique for a panel data model of 406 non-financial firm of 8 developing African nations. The findings reveal that macroeconomic variables are determinant of capital structure of non-financial in Africa. The findings show that financial managers can benefit from raising additional capital as macroeconomic conditions are favorable. Moreover, shareholders should employ firm managers with good knowledge of macroeconomic conditions and also encourage them raise debt capital needed to fund positive investment. Lastly, Policymakers should enact policies that promote financial market development because such policies would complement the banks’ financing strategies and firms would have more access to debt capital.
Authors and Affiliations
Ahmed Balarabe Musa
Keywords
Related Articles
- EP ID EP709207
- DOI -
- Views 66
- Downloads 0
BOARD DIVERSITY AND FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN MALAYSIA
Corporate governance of Islamic Banks (IBs) presents entirely unique and different complexities compared to conventional counterparts. Despite these complexities and some reported cases of financial scandals involving th...
SUSTAINABILITY REPORTING AND FINANCIAL PERFORMANCE OF NIGERIAN AND MOZAMBICAN OIL AND GAS COMPANIES
The thrust of this study is to determine the influence of sustainability reporting on the financial performance of firms from Nigeria and Mozambique and it is triggered by recent increase in sustainability reporting by...
INFLUENCE OF ENVIRONMENTAL ACTIVITIES AS CORPORATE SOCIAL RESPONSIBILITY DIMENSION ON FIRM FINANCIAL PERFORMANCE OF NIGERIAN LISTED FIRMS
Ever since the beginning of companies’ activity in Nigeria, the value of corporate social responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Nigeria, s...
INTERLOCKING BOARD MEMBERSHIP AND FINANCIAL PERFORMANCE OF LISTED FIRMS IN NIGERIA
This study examined interlocking board membership and financial performance of listed firms in Nigeria. A sample of fifty (50) listed non- financial firms was selected from the population using the systematic random samp...
MODERATING EFFECT OF LEVERAGE ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE NIGERIAN LISTED OIL AND GAS FIRMS
The study investigates the moderating effect of leverage on the value relevance of accounting information in the Nigerian listed oil and gas firms. The study used correlational research design and the data was extracte...