Economics at your fingertips  

Determinants of capital structure: Evidence from sub-Saharan African firms

Wafa Khémiri and Hédi Noubbigh

The Quarterly Review of Economics and Finance, 2018, vol. 70, issue C, 150-159

Abstract: This paper examines the determinants of leverage firms in five sub-Saharan African countries (South Africa, Ghana, Kenya, Nigeria and Zimbabwe) over the period 2006–2016. The results of the System GMM estimation and quadratic methods supports the predictions of the trade-off theory and the pecking order theory. They also show a significant inverse U-shaped relationship between the firm's performance and its leverage. Moreover, prior leverage and macroeconomic factors are robust determinants of the level of debt.

Keywords: Capital structure; Trade-off theory; Pecking order theory; Non-financial firms; Dynamic panel data; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-01-19
Handle: RePEc:eee:quaeco:v:70:y:2018:i:c:p:150-159