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https://www.um.edu.mt/library/oar/handle/123456789/38038
Title: | Determinants of capital structure : an empirical study of KSE listed MNCs in Pakistan |
Authors: | Iqbal, Fatima Ahmad, Muhammad Bilal Ali, Hafiz Fawad |
Keywords: | Stock exchanges -- Pakistan International business enterprises -- Finance International business enterprises -- Pakistan Financial leverage -- Pakistan Agency costs -- Pakistan |
Issue Date: | 2019-01 |
Publisher: | Ahmet Gökgöz |
Citation: | Iqbal, F., Ahmad, M. B., Ali, H. F. (2019). Determinants of capital structure : an empirical study of KSE listed MNCs in Pakistan. Journal of Accounting, Finance and Auditing Studies, 5(1), 173-195. |
Abstract: | Multinational Corporations (MNCs) are generally financed with a mixture of internal debt and equity from the parent corporation. Yet, financial theory has relatively little to say regarding the capital structure and its determinants in an international setting. This research empirically examines the major determinants of capital structure decisions of Multinational Corporations listed on the Karachi Stock Exchange for the period 2005-2017. The data was studied using panel data regression analysis. Results suggest that apart from traditional determinants such as profitability, tangibility, size, Non Debt Tax Shield (NDTS) etc., specific international factors such as political risk, exchange rate risk, agency costs and bankruptcy costs are relevant to the multinational capital structure decision. The results are broadly consistent with theory. It is therefore recommended that the management of listed MNCs in Pakistan should always consider their positions using these capital structure determinants as important inputs before embarking on debt financing decision. |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/38038 |
Appears in Collections: | Journal of Accounting, Finance and Auditing Studies, Volume 5, Issue 1 Journal of Accounting, Finance and Auditing Studies, Volume 5, Issue 1 |
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JAFAS,_5(1)_-_A9.pdf | 446.98 kB | Adobe PDF | View/Open |
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