Determinants of Capital Structure of Banking Sector in GCC: An Empirical Investigation

Abdullah AL-Mutairi and Kamal Naser

Asian Economic and Financial Review, 2015, vol. 5, issue 7, 959-972

Abstract: This work attempts to identify determinants of capital structure in a sample of commercial banks listed on the Gulf Cooperation Council (GCC) stock markets. To achieve this objective, data about were collected from 47 GCC commercial banks for the period between 2001 and 2010. We find that profitability and liquidity affect banks’ capital structure decision. The major contribution of this study is that, the majority of the commercial banks’ assets in GCC is financed by debts which represents more than 80 percent of the capital of the banks. This emphasizes the importance of long-term debts in commercial banks’ financing in GCC.

Keywords: Capital structure; Pecking order theory; Static trade-off theory; Banking sector; GCC markets. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1417/2047 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:5:y:2015:i:7:p:959-972:id:1417

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().