THE EFFECT OF INDUSTRY AND FIRM’S OWNERSHIP ON CAPITAL STRUCTURE OF FIRMS IN BOSNIA AND HERZEGOVINA

Azra Bajramovic ()
Additional contact information
Azra Bajramovic: Dzemal Bijedic University of Mostar, Bosnia and Herzegovina

Eurasian Journal of Economics and Finance, 2016, vol. 4, issue 4, 1-7

Abstract: This paper examines the effect of industry and firm ownership on capital structure of firms in Bosnia and Herzegovina. Since most of the studies for developed and other transition economies explore the effect of different determinants on capital structure through firms’ leverage, that approach was used in this study too. Data on firms listed in two stock exchanges were obtained for the period of 2011-2015. Effects of industry and ownership on firm’s leverage were tested through the use of ANOVA and t-test. The results indicate differences in significance of industry and firm’s ownership for the firms listed in Sarajevo and Banja Luka Stock Exchange. For firms listed in BLSE industry effects have proven to be statistically significant where manufacturing firms have higher leverage while firms in water supply, electricity, gas supply industry have lower leverage. The results also show that privately owned firms will have higher leverage compared to state owned firms.

Keywords: Capital Structure; Leverage; Industry Effect; Ownership Effect Journal: Eurasian Journal of Economics and Finance (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2021/02/EJEF-4.4.1.pdf (text/html)

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:ejn:ejefjr:v:4:y:2016:i:4:p:1-7

Access Statistics for this article

Eurasian Journal of Economics and Finance is currently edited by Xuan Vinh Vo

More articles in Eurasian Journal of Economics and Finance from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().