Determinants of the capital structure of small and medium enterprises: Empirical evidence in the public works and hydraulics sector from Algeria

Ishaq Hacini, Khadra Mohammedi () and Khadra Dahou ()
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Khadra Mohammedi: University of Mascara, https://orcid.org/0000-0003-3180-8793
Khadra Dahou: University of Mascara, https://orcid.org/0000-0001-5862-5685

Small Business International Review, 2022, vol. 6, issue 1, e408

Abstract: This study aims to identify the determinants of the capital structure of SMEs in Algeria during the period 2010-2018. Where a sample consists of 20 SMEs from the Public Works and Hydraulics sector. The study used financial leverage as the dependent variable and assets structure, profitability, liquidity, and size as independent variables. The study used Panel Data methods for testing the hypothesis. The results show that profitability, liquidity, and assets structure are negatively related to financial leverage, while size does not affect the financial leverage. The results indicate that SMEs in Algeria rely on their internal resources to finance their activities.

Keywords: capital structure; small and medium enterprises; financial leverage; Algeria (search for similar items in EconPapers)
JEL-codes: C33 D22 G32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aaz:sbir01:v:6:y:2022:i:1:p:e408

DOI: 10.26784/sbir.v6i1.408

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