The Capital Structure Choice: Evidence of Debt Maturity Substitution By GCC Firms

Asian Economic and Financial Review

Lamia A. Obay^1¹ 

[1] University of Wollongong in Dubai. Faculty of Business, Dubai, United Arab Emirates^1

关键词: Capital structure;    GCC;    Financial markets;    Panel data.;    Financial performance;    Two-stage least square;   

DOI  :  10.18488/journal.aefr.2018.811.1298.1312

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

The objective of this study is to investigate the determinants of the capital structure decision in the face of restricted access to external financing. Based on a sample of 150 listed firms over the period 2000-2009, a two-stage least squares regression is used to test the determinants of capital structure, while controlling for firm-specific and country-specific factors. The results show that size, profitability, tax-shield and collateral have a significant impact on leverage. A country effect is also observed. Firms operating in the United Arab Emirates (UAE) exhibit a significantly higher level of leverage when compared to their peers in the neighboring countries. The results further document a novel finding that highlights the practice of debt-maturity substitution to circumvent the existence of external financing constraints faced by firms operating in the Gulf Cooperation Council (GCC) region.

【 授权许可】

CC BY