 Determinants of capital structure: evidence from Sub-Saharan AfricaGibson Hosea Munisi International Journal of Managerial and Financial Accounting, 2017, vol. 9, issue 2, 182-199 Abstract: This study utilised the comprehensive database of non-financial firms listed on the stock exchanges of 12 Sub-Saharan Africa countries in the period 2005-2009 to examine the determinants of capital structure of these firms. The findings indicate that capital structure is negatively associated with profitability and tangible assets, which is supported by the pecking-order theory and the trade-off theory, respectively. Furthermore, the findings show that capital structure is positively associated with free cash and firms' growth, which is consistent with the agency theory and the pecking-order theory, respectively. The results have implications for practitioners, such as business managers, bankers and lenders as well as for capital structure research. Furthermore, the study confirms that association between capital structure and some specific characteristics of firms is inconclusive as some results differ from the results of previous studies. This indicates that there is a need for scholars to conduct more studies to unravel the capital structure puzzle. Keywords: capital structure; determinants; leverage; Sub-Saharan Africa. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:injmfa:v:9:y:2017:i:2:p:182-199 Access Statistics for this article More articles in International Journal of Managerial and Financial Accounting from Inderscience Enterprises Ltd |
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