CAPITAL STRUCTURE 1

CAPITAL STRUCTURE AND FIRM PERFORMANCE: EVIDENCE FROM UK AND

NIGERIA
Name of Student
Name of Instructor
Date
 CAPITAL STRUCTURE 2

Contents
CHAPTER 1 ........................................................................................................................................... 3
Introduction ............................................................................................................................................. 3
Chapter 2 ................................................................................................................................................. 4
Literature Review.................................................................................................................................... 4
Background & Preliminary Literature Review ................................................................................... 4
MM Capital Structure Theory ......................................................................................................... 5
MM Capital Structure Trade-off Theory ........................................................................................ 5
Agency Costs Theory:..................................................................................................................... 5
The Pecking Order Theory:............................................................................................................. 6
Chapter 3 ................................................................................................................................................. 6
DETERMINANTS OF Capital Structure ............................................................................................... 6
INTERNAL DETERMINANTS OF CAPITAL STRUCTURE ........................................................ 6
External Determinants OF CAPITAL STRUCTURE ........................................................................ 6
Chapter 4 ................................................................................................................................................. 7
Research Questions ............................................................................................................................. 7
Data Correlation .............................................................................................................................. 8
RESULTS AND DISCUSSIONS ................................................................................................... 9
Propose Research Methods ............................................................................................................... 18
Limitation.......................................................................................................................................... 18
Time Table/ Plan for Research.......................................................................................................... 18
Ethical Review Form ........................................................................................................................ 19
Conclusion ............................................................................................................................................ 19
References ............................................................................................................................................. 21
 CAPITAL STRUCTURE 3

CHAPTER 1

Introduction

The financing mechanism of the company in which the management raise its capital is
considered as one of the most important concerns of several organizations around the world,
which includes leverage or the issuance of shares in order to increase capital. Effective
financing techniques involve supporting the company's operations through a mix of financing
techniques that contains an effective mix of equity and part of debt in the company.
Therefore, it is asserted that the choice of the capital structure of an organization must be
enough to finance the daily routine including the strategic objective of the company. In the
developed nation, such as the United States of America or the second and third country of the
world as Nigeria, in terms of financial improbability the capital structure is perceived as one
of the most important judgments for professional finance manager who are responsible for
directing the company, in the time when the organization is expanding or funds are required.
The main objective of the finance manager is to expand the operation of the company, which
includes expanding the operation of the company to another country, as well as improving the
overall wealth of shareholders and shareholders. For this, there are several elements that have
a catastrophic effect on leverage decision making that will enable the financial executive to
execute the company's cost management strategy, loan lending along with improved
profitability of the company (Chadha & Sharma, 2015, pp. 295).
Sbeiti (2012) contributes to the fact that research on capital structure is more
multifaceted, determinants of the capital structure persist to be investigated by academic
researchers. According to James, the determinants of the structure of capital differ from one
nation to another, and even from different industries in a similar nation (Chadha & Sharma,
2015). However, this study will analyze the effects of external factors on capital structure and
company performance, such as macroeconomics, the impacts of globalization and political
threats, with special emphasis on firms in the United Kingdom and Nigeria. Also, the
relevance of financial ratios on capital structure and company performance could be critically
analyzed in this research study (Gitman & Zutter, 2010).
There are several tools that are introduced to implement an effective capital structure
in the company, ranging from Modigliani's Millers theory to the capital asset pricing model.
Barclays has implemented an effective proportion of debt and equity in the capital structure
of the organization, resulting in an efficient combination of finances. The main objective of
an effective capital structure is to identify the best possible way in which the organization can
reduce the financial cost of the firm, in order to improve its profitability and to offer the best
return to its shareholders on the investment they have made in the company. Therefore, the
financial manager in designing the capital structure of the company must include all the
elements that are made through the execution of the financial decision, this decision includes
the acquisition and merger scenario or when capital is required to support commercial
operations.
With the explosion of the capital market, the assessment of financial performance
becomes important issues in finance. Therefore, the role of financial measures seems
essential to assess the performance of the company. In recent decades, the importance as well
 CAPITAL STRUCTURE 4

as effectiveness of financial options in growth prospects became a ration to evaluate

performance and increase the value of the company. Therefore, the idea of performance is a
controversial issue in finance due mainly to its multidimensional implications. Lie argues that
performance can be recognized from two perspectives. Organizational and financial (the two
are interrelated); the performance of a company can be measured based on variables that
include customer satisfaction, productivity, returns and growth. Financial performance
replicated in maximizing profit, exploiting ROA, exploiting ROE and exploiting ROI is based
on firm effectiveness (Barclay & Smith, 2005, pp. 8).
The first model that has been introduced to execute the optimal capital structure in the
financial mechanism of the organization is the Modigliani and Miller theory that was
introduced during the period of 1958 which is determined as one of the major milestone that
helps to introduce others improved model such agency theory, signaling theory, WACC, tax
shield theory, etc., the positive and negative relationship of introducing the capital structure
was initiated by MM 1958, which has an impact on the performance of the company as well
as its financial structure.
Therefore, it is stated that there is a strong positive correlation between the
performance of the company and the implementation of the capital structure of the
organization, which is discussed in several parts of this document. This research work on the
capital structure of the company allows me to understand the role of the effective
combination of leverage and equity in the success of the organization and the internal and
external element of the introduction of capital structure within the company. In this sense, it
is applicable to specify that the standard of the old research compositions on capital structure
generally ingested its internal determinants, similar to the measure of organization, substance,
development perspective, non-fiscal shield, organizational risk and profit resources as an
immediate measure of the association between capital structure and the execution of friends.

Chapter 2

Literature Review
Background & Preliminary Literature Review
The capital structure of the company has a greater participation in the selection of the
financing method of the company to support its commercial operations. It determines the mix
of shares and leverage that is posed by the company in other financial institutions and the
capital market to improve the general wealth of shareholders or the provision of services or
the production of goods. The level of profitability and proficiency of the capital employed in
the operation of the business is based on the manager's abilities to use the business resources,
in which the main objective is to maintain the balance between the corporate objectives and
the objective together with the profitability of the business. In this paper the study was also
proposed in which the value of debt incurred in business operations is analyzed (Tudose,
2012, pp. 76).
Manager in companies are solely responsible for implementing the financial decision
which also includes determining the optimal capital structure, which means proposing an
effective mix that balances the level of leverage and equity in the capital mechanism of the
company. The decision on the capital structure plays a leading role in optimizing the value of
the company together with the performance of a company and occupies the use of a mix of
different sources of financing a company uses to finance its activities and for the investments.
 CAPITAL STRUCTURE 5

The capital structure played an important role in the decision to finance a company used for
its activities. It shows the mix of debts and actions that companies raise in the capital market,
in addition to other financial organizations in the manufacture of goods and services to
exploit shareholder wealth. Therefore, the degree of capacity and profitability of the capital
used in the company's activities was based on how efficiently it was used by executives, who
are charged with maintaining a balance of probability between the objectives and purposes of
the company. With the explosion of the capital market, the assessment of financial
performance becomes important issues in finance. Therefore, the role of financial measures
seems essential to assess the performance of the company. In recent decades, the importance
as well as effectiveness of financial options in growth prospects became a ration to evaluate
performance and increase the value of the company. Therefore, the idea of performance is a
controversial issue in finance due mainly to its multidimensional implications. Tudors argues
that performance can be recognized from two perspectives. Organizational and financial (the
two are interrelated); the performance of a company can be measured based on variables that
include customer satisfaction, productivity, returns and growth. Financial performance
replicated in profit maximization, exploiting ROA, exploiting ROE and exploiting ROI is
based on firm efficacy (Tudose, 2012, pp. 76).
MM Capital Structure Theory
Miller and Modigliani propose a theory in their study that establishes that there is a
proportion of irrelevance in the capital structure of the company. In their study, they assert
that no matter whiter the management of the company uses the capital structure to support its
business operations. The theory of MM states that there is no transaction cost, there are no
taxes, there is no disparity in the cost of leverage, there is no cost of bankruptcy for investors
and companies, and the same information is available to the market based on earnings before
interest and taxes and company debt. This theory is followed by the Trade-off theory that was
introduced during the period of 1963 (Yu & Luu, 2009, pp. 126). Therefore, it is affirmed
that there is a strong positive correlation between the performance of the company and the
implementation of the capital structure of the organization, which is discussed in several parts
of this document. This research work on the capital structure of the company allows me to
understand the role of the effective combination of leverage and equity in the success of the
organization and the internal and external element of the introduction of capital structure
within the company. In this sense, it is applicable to specify that the standard of the old
research compositions on capital structure generally ingested its internal determinants, similar
to the measure of organization, substance, development perspective, non-fiscal shield,
organizational risk and profit resource as an immediate measure of the association between
capital structure and execution of friends (Yu & Luu, 2009, pp. 126).
MM Capital Structure Trade-off Theory
In 1963, Modigliani and Miller later asked and emerged with Trade-off Theory recognizes
the tax cut of intrigue quotas since the intrigue paid on the obligation is taxable and the
emission values decrease the liability of the evaluations of the companies . There were many
examinations by specialists after MM Propositions that focused on the connection between
the determinants of the Capital Structure and the esteem of the association. Thereafter, office
cost and sketch request assumptions were developed to address some key questions about the
Capital Structure (Myers, 2001, pp. 84).
Agency Costs Theory:
Jensen's agency cost theory suggested that the capital structure was impacted by
clashes and organizational issues. Investors practice the control and control of the Managers
who maintain the commercial operations of the association. Balanced speculators (investors)
 CAPITAL STRUCTURE 6

would do everything possible to prevent managers from controlling the organization's

accounts, for example, keeping incomes and income free to avoid irreconcilable
circumstances. It is a general confidence that organizations that are highly observed by
investors depend on the low cost of the loan on the bonds and the financial specialists are
deeply intrigued to put resources into that organization. This exploration work would also
focus on corporate governance with a unique emphasis on clashes and control measures that
have a coordinated effect on the execution of the enterprise in developing and developed
countries (Kayo & Kimura, 2011, pp. 359).
The Pecking Order Theory:
The Theory of the Pecking Order suggests that organizations are inclined to return to
an external fund. The theory is in view of the erroneous data as the investors of the
organizations and the bosses have direct data on the organizations that the external financial
specialists. Berkley and Myers, 2008 proposes that the company first used the reinvested
income and has just issued new values as a final resource when each asset and bond / bond
has been exhausted. It was proposed to facilitate that the company that uses within the
accounts for its business operations to achieve abnormal state of profitability (Rasiah &
Peong, 2011, pp. 150).

Chapter 3

DETERMINANTS OF Capital Structure

This proposed study would concentrate on both inside and outside determinants of
Capital Structure to pick its effect on firm execution to see whether there is sure or negative
relationship (Rehman & Rehman, 2011, pp. 741).
INTERNAL DETERMINANTS OF CAPITAL STRUCTURE
This examination would isolate the inward determinants of Capital Structure with
specific precise notional theories and Theory which may affect the association's dedication
regard decision. These elements are imparted as liberal quality, non-responsibility charge
shields, change opportunity, and benefit for resource, firm threat, and firm size. These are
determinants of Capital Structure that can be coordinated and control by supervisors and cash
related experts (Ho-Yin 2011, pp. 101; Sbeiti, 2010, pp. 55).
External Determinants OF CAPITAL STRUCTURE
Aforetime, endeavors were run just around inside determinants of Capital Structure in
estimation of association's execution in relationship with Capital used. Regardless, this
examination will investigate enhearten the relationship between corporate Capital Structure
and outer components, for example, globalization influence, money related method,
budgetary course of action, advantage, liquidity and political dangers which are outside the
competency to control of the directors and scholars in UK and Nigeria. The effect of
BREXIT on UK firms and political dangers and withal poor money related approach
execution by Nigeria organization which had encourage influence on Capital Structure and
firm execution would be eviscerate in this examination.
 CAPITAL STRUCTURE 7

Chapter 4
Research Questions
The examination demand would be had a tendency to in light of the past exploratory
approval instigated by analysts on effect of the determinants of Capital Structure and
sodality's execution. The pivotal research question is that:
"Despite whether a firm execution is related with its Capital Structure or not?"
This examination work would isolate the notional speculation in context of the tribulation of
the invalid Theory.
H1: Firm's execution is on an exceptionally essential level identified with its Capital
Structure.
H0: Firm's execution is not on an exceptionally fundamental level contrasted with its Capital
Structure.
This examination would concentrate on the association between Capital Structure and its
determinants on association's execution. Propel Theory tribulation of determinants of Capital
Structure and firms' respects would be apparently break down utilizing longitudinal and clear
fall away from the faith models (Dang, 2013, pp. 172).
(1) Return on Equity: The examination uses Return on Equity (ROE) as poor variable and
delegate for fiscal execution. It is understood in light of how it is a key accounting predicated
and altogether apperceived measure of budgetary execution. In the privilege indited work
Tobin's Q in its essential shape (the market estimation of key worth in spite of the market
estimation of obligation isolated by the supersession cost of all purposes of premium) or in
changed edge is extensively utilized as center individual for assessing association's execution.
Since an expansive segment of the sodalities in Nigeria make utilization of less whole plan
obligation capital and the weight in getting the required information relating to the market
estimation of obligation, the use of extraordinary Tobin's Q or in its transmuted shape is not
kept up, therefore not utilized as a touch of this examination.
(2) Ownership structure: We understand ascendant figure' proprietorship level to center
individual for ownership structure as this is the regularly utilized as a touch of the indited
work. It shows the limitation of boss to remote the requirements of sundry scholars. Jensen
confirms that drawn out managerial proprietorship may cause course of action impacts,
therefore particularly affecting the firm regard. The running with winnow hypothesis will be
endeavored under the linearity supposition of relationship between ownership structure and
execution:
H1 (an): Ownership structure is decidedly and on an exceptionally fundamental level
identified with firms‟ execution.
In any case, Stutz envisions that extended authoritative respect proprietorship can other than
have the effect of settling in overseers, in like way unfavorably influencing the execution of
the firm. We likewise test the running with speculation:
H1 (b): Ownership structure is oppositely and by and immensely beast identified with firms‟
execution.
 CAPITAL STRUCTURE 8

The nonlinearity sodality between proprietorship structure and firm execution has
proliferated expanding more assistance from late observational examinations. Do Nigerian
data fit into this? We test the running with particular hypothesis (Nguyen & Nguyen, 2012,
pp. 23; Cortez & Susanto, 2012, pp. 122):
Alternative hypothesis:
H2: The sodality between proprietorship structure and firm execution is nonlinear and
essential.
(3) Debt: This is joined as a control variable and can be habituated to test the disciplinary
piece of obligation. The pecking demand theory estimates a negative sodality between the
execution variable and duty degree. Regardless, the workplace speculation foreshadows that
higher utilize is depended on to slash down sodality costs, reduce inefficiency and thusly
provoke change in affiliation's execution. Thusly, the notional speculation expects that a
positive relationship subsists between obligation degree and execution measure.
Execution measure to be identified with each other through firm size is high. This
illuminates the clarification for the prelude of firm size as a control variable in this
examination. Penrose fights that more overwhelming firms can perceive economies of scale
and these can have exceptional impact on execution. We expect a positive sodality between
the execution variable and firm size.
(5) Asset substance: This is acknowledged to be a fundamental determinant of execution in
the US and other made countries. Mackie reasons that a firm with high division of plant and
contraption (unmistakable assets) in the favored perspective base effects its execution. The
most appreciated inquiry in the indited work supports a positive sodality between the two
elements.
(6) Age: This can in like way have impact on firm execution, beginning now and into the not
so distant the exordium of AGE as a control variable. Stinchcombe battles that more settled
firms can finish experience predicated economies and can disregard the liabilities of
idiosyncrasy. We expect a positive sodality between firm factor and execution.
Data Correlation
We start our examination by exploring the determinants of capital structure for the
sodalities recorded on the S&P 500. We grasp after a relative strategy as Buena, where they
concentrate on three key capital structure speculations for the Libyan market. They suggest
that some oversee factors winnowing firms' utilization degree are asset imperative quality,
firm movement and firm size, while the examination of Prahalathan other than join
proficiency as a cyclopean factor. These are named our standard free factors. As a key walk,
we endeavor to build fundamental information into the effectively verbalized theories, to be
particular pecking demand notional theory and trade off speculation, by playing out our
econometric estimation. Continuing as indicated by past examinations, for instance, those of
Seedy, we also dole out utilize utilizing three exceptional measures (I) Short-term
obligation/Total assets, (ii) Long-term obligation/Total assets and (iii) Total liabilities/Total
assets (Akeem et al, 2014, pp. 40).
The first model that has been introduced to execute the optimal capital structure in the
financial mechanism of the organization is the Modigliani and Miller theory that was
introduced during the period of 1958 which is determined as one of the major milestone that
helps to introduce others improved model such agency theory, signaling theory, WACC, tax
 CAPITAL STRUCTURE 9

shield theory, etc., the positive and negative relationship of introducing the capital structure
was initiated by MM 1958, which has an impact on the performance of the company as well
as its financial structure.
Therefore, it is stated that there is a strong positive correlation between the
performance of the company and the implementation of the capital structure of the
organization, which is discussed in several parts of this document. This research work on the
capital structure of the company allows me to understand the role of the effective
combination of leverage and equity in the success of the organization and the internal and
external element of the introduction of capital structure within the company. In this sense, it
is applicable to specify that the standard of the old research compositions on capital structure
generally ingested its internal determinants, similar to the measure of organization, substance,
development perspective, non-fiscal shield, organizational risk and profit resources as an
immediate measure of the association between capital structure and the execution of friends.
Coming about to inquisitive about the determinants of capital structure for the
sodalities recorded on the S&P 500, we degree our examination to consider the impact of
capital structure on firm execution. We will test our three focus people of utilization on firm
execution. Subsisting documentation relies on different estimations of firm execution. These
can be part into accounting estimations, for instance, Return on Equity, Return on Assets and
gross general compensation, and into feature estimations, which is depicted by the watched
Tobin's Q. As necessities are our examination will in like way join both accounting and
market estimations in order to continue as indicated by current indited work (Chen, 2004, pp.
1341).
RESULTS AND DISCUSSIONS
Table 1 exhibits the estimation inescapable aftereffects of Equations 3, 4 and 5
appeared in the past district utilizing the settled effects estimation system. Models 1 to 4 in
the table are elective particulars in which the Herfindahl-Hirschman Index is utilized as the
switch measure of ion. Of course, models 5 to 8 are the models utilizing BI as the genuine
measure of debate. Models 1, 2, 5 and 6 shows the benchmark occurs as proposed got from
the estimation of Equation 3. The results show that cash related utilize affect wily effects firm
execution (Keshtkar et al., 2012, pp. 46).
Following the exposures of Jensen, these results embrace that money related utilize
mitigates the workplace costs of external respect. In like path, as per the revelations of Foss,
with the utilization of traditionalist obligation by Nigerian firms (like their South African
partners), and their decently higher use of essential worth store, it is conventional that the
sodality costs of preeminent worth will outflank the workplace costs of obligation, making
the workplace slants of duty generously more achievable for direct suggested firms. This
finding is comprehensively attempted and valid with the correct affirmation showed in Weill
(2008) and Berger and Bonaccorsi. Unexpectedly, by controlling for the squared term of
utilization as showed in condition 5, recognizes models 2 and 6 does not transmute the results
grabbed for the coefficient of money related use without the phrenic start of the squared term.
The coefficients of the squared term of use shows that they are quantifiably negative,
endorsing that over the best levels of utilization may adversarial affect the execution of firm.
Regardless, given the cross of these coefficients, the general effect of use on firm execution is
certain. These divulgences offer assistance for the fundamental theory of the examination that
utilization all around impacts firms' execution in Nigeria.
 CAPITAL STRUCTURE 10

On the effect of market debate on firm execution, the results show that constraint
don't have certain epic impact on the execution of the sodalities, beside HHI in the model 2
after the union of the squared term of utilization in the model. The results furthermore exhibit
that the control factors are fundamentally identified with the execution of firms. The
coefficient of the firm size exhibits that it has a nonlinear and really gigantic relationship with
firm execution. This result is solid with the revelations of Ghost. This nonlinear relationship
could recommend that while the upside of firm size, (for instance, refresh and economies of
scale) may benefit bolster the execution of such firm, paltry advancement of firms may make
moral threat general in the firm. Like firm size, movement is found to in like way a positive
relationship with execution. In any case, the result is not quantifiably straightforward.
Expected return of the sodalities (MROA) withal has a positive and goliath relationship with
the firm execution. The estimation result for condition 4 wherein the learned term of
utilization and struggle is cemented among the instructive parts of the model is shown in
models 3, 4, 7 and 8 with HHI utilized as the estimation of competition in models 3 and 4,
while BI was utilized as a touch of models 7 and 8. The estimation happens to some degree
shift from what was gotten in the past models. The effect of utilization keeps up its positive
and principal coefficient and the effect increases with thing flaunt competition. The
utilization question participation terms and the squared estimation of use are both not really
focal when used more often than not in a close model, even after the evasion of the squared
terms of utilization. In any case, a joint tribulation of correct criticalness shows that they are
generally goliath.
The sorted out effort term among utilize and the HHI measure of ion in like way BI
measure (exhibit 8) the two shows positive coefficients with none of the two genuinely basic.
These divulgences propose commixed comes to fruition on the upsides of utilization over
thing advance debate. Certainly when HHI is utilized as the estimation of ion, the result gives
a coefficient appoint that is contrary to the negative sign anticipated from the up to. This
result prescribes that utilizing HHI as an assessment of obsession, the upsides of utilization
increases with meeting of firm contrary to the decrementation expected, however the result is
not by any stretch of the imagination straightforward. Of course, the correspondence term
among BI and utilize gives a positive denotement recommending that the upsides of
utilization increase with thing show debate thusly impelling benefit for the second hypothesis
that the sodality hopeful states of utilization in a general sense broaden with plug competition
of Nigerian firms.
Withal, these exposures offer assistance for different speculative estimates. Such
examinations join Bolton. These examinations nearly give confirm that prescribe that
headway in fiscal utilize is related with savage direct in concentrated thing appears. Despite
the way that, Polar and Titman find a turn around result, that is brisk negative effect of
utilization on firm execution, the execution measures utilized as a touch of these
examinations move from the one utilized as a touch of this examination. The results in table 2
endeavor to survey the third theory of the examination and also to affirm the probability that
the senseless effect of utilization on firm execution could be encourage driven. The
estimation in the table is done by supplanting the assessment of utilization with the relative
utilize which is an estimation of the ability between an organization together's utilization and
the mean business utilize (conditions 6 and 7). This well past checks the essentialness of the
earlier results and additionally to maybe support the propinquity of savage lead as laid out in
past examinations. Solid with the divulgences got when utilize was utilized, the coefficients
of relative utilize is sure and basic for both HHI and BI measures. These revelations
demonstrate that sodalities that are more used than their foe perceives higher execution which
increases with thing flaunt ion. Further, rather than the result got on the correspondence term
 CAPITAL STRUCTURE 11

of utilization and HHI when utilize was considered in table 4 over, the arranged effort term
with the use of relative utilize demonstrates negative while that of BI keeps up the positive
checked coefficients. These exposures propose that the upside of relative utilize increase with
thing feature strife (obsession). Thusly crediting advantage for the third hypothesis of the
examination that high as to compose firms' use is related with high firm execution which
creates (reduces) with thing advance ion (center).
To survey the sodality among utilize and firm execution we utilized the firm-level
budgetary illuminating accumulation gave by National Statistics admonitory get together of
Nigeria and open from KSE server create. It joins bookkeeping reports and wage
verbalizations of the case of sodalities with different sorts of breaker for the time of 2001-
2010, and supplementally other firm-full scale information (industry, definitive sort ET
cetera.). The obnubilated dataset is an unequal driving social occasion of 21,595 endeavors
and 115,762 discernments. From all possible legitimate structures available in Nigeria we
keep open business substances, close business segments and obliged chance sodalities to take
in a homogeneous amalgamation bundling in the outline. Firms with sundry sorts of joining
constitute only 6.5% of the case, however in its lion's offer address non-propel parts (state-
ensured endeavors, buyer cooperatives, confides in, property, thing exchanges, annuity stores
and so forth.) and could distort the conceded results of our examination. Coming about to
dropping such sodalities we are left with the 20,184 firms and 109,254 apperceptions.
Nigerian firms set up their money related reports as showed up by Nigerian
accounting models rather than International Financial Reporting Standards (IFRS).
Regardless of the way that all open business parts are required to be evaluated, it is
infrequently possible to have accounting fouls up in genuine cash related enlightenments for
an expansive variety of firms. Before long, since we can't reveal these slip-ups and the
explore of the case is immensely tremendous, we can insignificant accounting bungles.

One fascinating finding is that in 49% of perceptions firms don't have duty by any
reach out of the sharp workforce. As a result of this realness the ordinary level of
essentialness bearing feeling of obligation with respect to show assets is 0.071. This
astuteness is dependable with the finding of Capri, who cleared up low use in instigating
countries by low advantage and encompassed access to capital markets. In particular, 12693
firms never had obligation on their change in the midst of 2001-2010. Along these lines, there
is a monster measure of perceptions with utilize undefined to 0 (Figure 2).
 CAPITAL STRUCTURE 12

Table 2 shows true blue bits of instruction of the components included into lose the
confidence in (1). Figure 3 depicts the courses of two fragments from Table 3: ROA and
EBIT edge.

General Nigerian firms have negative working pay edge with to some degree left-
skewed scrambling (Figure 3), yet positive and low preferred standpoint for assets (ROA).
Possible clarifications behind such poor operational execution might be the way that
sodalities underreport benefits with a particular bona fide objective to evade charge
assessment rate. In view of the extensive measure of thoroughly respect financed firms, a
standard firm props only 7% of its focal concentrations through obligation. In the midst of the
optically requested period 2001-2010, 5,151 firms of the case entered the market, and 7,294
firms of the case left the market (Figure 4).

Mean factor productivity was reviewed for the paper "Nigeria genuine examination:
Jobs and Demographic Change" utilizing Oley procedure and was given by one of the
makers. TFP estimations are available only for 2001-2009 years. In light of nonattendance of
 CAPITAL STRUCTURE 13

data required to assess period work for 2010, models with TFP uses more minute measure of
discernments than models with ROA and EBIT edge. In any case, we show works out as
planned for the whole instance of firms, and a while later for the subsamples. Determinately
we will take a gander at the alteration in touches base at acknowledgment whether
endogeneity is standard. Subsequently, we start by observing some vital portions impacting
our sodalities' capital structure and their utilization degree.
Results for the overall sample
Results of the fixed effect regressions are the following:

As ought to be self-evident, our basic hypothesis about the reworked U-shaped

association among utilizes and firm execution can be rejected. The result is relentless for all
measures of firm execution. We can watch a negative effect of utilization on ROA, EBIT
edge and TFP. A possible illumination can be found in McConnell and Serves (2010):
negative effect of utilization on execution tends to exist for high-advancement firms, while
advantageous result orders for low-improvement associations. The closeness of commitment
binds the firm to settled portions later on, and boss should defer some positive net present
regard wanders. The reverse situation occurs for firms with low wander openings.
Commitment is an instrument that shields executives from placing assets into negative net
present regard wanders. As a making market, Nigeria potentially gives greater improvement
open entryways. This is a possible inspiration to watch negative dependence among utilize
and firm execution.
The capital structure of the company has a greater participation in the selection of the
financing method of the company to support its commercial operations (Tudose, 2012, pp.
76). It determines the mix of shares and leverage that is posed by the company in other
financial institutions and the capital market to improve the general wealth of shareholders or
the provision of services or the production of goods. The level of profitability and proficiency
of the capital employed in the operation of the business is based on the manager's abilities to
use the business resources, in which the main objective is to maintain the balance between the
corporate objectives and the objective together with the profitability of the business . In this
paper the study was also proposed in which the value of debt incurred in business operations
is analyzed (Tudose, 2012, p.76).
Manager in companies are solely responsible for implementing the financial decision
which also includes determining the optimal capital structure, which means proposing an
effective mix that balances the level of leverage and equity in the capital mechanism of the
company . The decision on the capital structure plays a leading role in optimizing the value of
the company together with the performance of a company and occupies the use of a mix of
 CAPITAL STRUCTURE 14

different sources of financing a company uses to finance its activities and for the investments.
The capital structure played an important role in the decision to finance a company used for
its activities. It shows the mix of debts and actions that companies raise in the capital market,
in addition to other financial organizations in the manufacture of goods and services to
exploit shareholder wealth. Therefore, the degree of capacity and profitability of the capital
used in the company's activities was based on how efficiently it was used by executives, who
are charged with maintaining a balance of probability between the objectives and purposes of
the company. business.
With the explosion of the capital market, the assessment of financial performance
becomes important issues in finance. Therefore, the role of financial measures seems
essential to assess the performance of the company. In recent decades, the importance as well
as effectiveness of financial options in growth prospects became a ration to evaluate
performance and increase the value of the company. Therefore, the idea of performance is a
controversial issue in finance due mainly to its multidimensional implications. Tudors argues
that performance can be recognized from two perspectives. Organizational and financial (the
two are interrelated); the performance of a company can be measured based on variables that
include customer satisfaction, productivity, returns and growth. Financial performance
replicated in profit maximization, exploiting ROA, exploiting ROE and exploiting ROI is
based on firm efficacy (Tudose, 2012, pp. 76).
On the effect of market debate on firm execution, the results show that constraint
don't have certain epic impact on the execution of the sodalities, beside HHI in the model 2
after the union of the squared term of utilization in the model. The results furthermore exhibit
that the control factors are fundamentally identified with the execution of firms. The
coefficient of the firm size exhibits that it has a nonlinear and really gigantic relationship with
firm execution. This result is solid with the revelations of Ghost. This nonlinear relationship
could recommend that while the upside of firm size, (for instance, refresh and economies of
scale) may benefit bolster the execution of such firm, paltry advancement of firms may make
moral threat general in the firm. Like firm size, movement is found to in like way a positive
relationship with execution. In any case, the result is not quantifiably straightforward.
Expected return of the sodalities (MROA) withal has a positive and goliath relationship with
the firm execution. The estimation result for condition 4 wherein the learned term of
utilization and struggle is cemented among the instructive parts of the model is shown in
models 3, 4, 7 and 8 with HHI utilized as the estimation of competition in models 3 and 4,
while BI was utilized as a touch of models 7 and 8. The estimation happens to some degree
shift from what was gotten in the past models. The effect of utilization keeps up its positive
and principal coefficient and the effect increases with thing flaunt competition. The
utilization question participation terms and the squared estimation of use are both not really
focal when used more often than not in a close model, even after the evasion of the squared
terms of utilization. In any case, a joint tribulation of correct criticalness shows that they are
generally goliath.
The sorted out effort term among utilize and the HHI measure of ion in like way BI
measure (exhibit 8) the two shows positive coefficients with none of the two genuinely basic.
These divulgences propose commixed comes to fruition on the upsides of utilization over
thing advance debate. Certainly when HHI is utilized as the estimation of ion, the result gives
a coefficient appoint that is contrary to the negative sign anticipated from the up to. This
result prescribes that utilizing HHI as an assessment of obsession, the upsides of utilization
increases with meeting of firm contrary to the decrementation expected, however the result is
not by any stretch of the imagination straightforward. Of course, the correspondence term
 CAPITAL STRUCTURE 15

among BI and utilize gives a positive denotement recommending that the upsides of
utilization increase with thing show debate thusly impelling benefit for the second hypothesis
that the sodality hopeful states of utilization in a general sense broaden with plug competition
of Nigerian firms.
Withal, these exposures offer assistance for different speculative estimates. Such
examinations join Bolton. These examinations nearly give confirm that prescribe that
headway in fiscal utilize is related with savage direct in concentrated thing appears. Despite
the way that, Polar and Titman find a turn around result, that is brisk negative effect of
utilization on firm execution, the execution measures utilized as a touch of these
examinations move from the one utilized as a touch of this examination. The results in table 2
endeavor to survey the third theory of the examination and also to affirm the probability that
the senseless effect of utilization on firm execution could be encourage driven. The
estimation in the table is done by supplanting the assessment of utilization with the relative
utilize which is an estimation of the ability between an organization together's utilization and
the mean business utilize (conditions 6 and 7). This well past checks the essentialness of the
earlier results and additionally to maybe support the propinquity of savage lead as laid out in
past examinations. Solid with the divulgences got when utilize was utilized, the coefficients
of relative utilize is sure and basic for both HHI and BI measures. These revelations
demonstrate that sodalities that are more used than their foe perceives higher execution which
increases with thing flaunt ion. Further, rather than the result got on the correspondence term
of utilization and HHI when utilize was considered in table 4 over, the arranged effort term
with the use of relative utilize demonstrates negative while that of BI keeps up the positive
checked coefficients. These exposures propose that the upside of relative utilize increase with
thing feature strife (obsession). Thusly crediting advantage for the third hypothesis of the
examination that high as to compose firms' use is related with high firm execution which
creates (reduces) with thing advance ion (center).
Despite that, Nigeria felt encountered a credit impact in 2004-2008. It was definitely
not hard to get a progress since requirements to the associations were fragile. In any case,
when the crisis came, firms may believe that it was hard to repay commitment. Along these
lines, an extension being used achieved more deplorable execution. The accompanying
possible elucidation is related to the irregular condition of shadow economy. In Nigeria there
exist designs when firms draw paying off indebted individuals, however then proprietor uses
it for various purposes (saves are traded a long way from the association). Finally the firm is
left with commitment inconvenience, which totally affect its execution (as credit fund where
not used to benefit the firm).
As to different factors, firms which will leave the market, demonstrate more terrible
monetary execution overall than occupants for EBIT edge particular. Be that as it may, in
TFP particular editors perform superior to anything those organizations which are available.
Along these lines, just those organizations left the market, which meet money related
troubles, however such firms are not really the ones with poor monetary efficiency. As was
normal, new market players all things considered perform superior to the current firms. The
outcomes about the impacts of EXIT and ENTRY factors on firm execution are near
anticipated. The theory about the dualistic idea of the firm size effect on firm execution is
affirmed when EBIT edge or TFP as the measure of execution is utilized, however is not
affirmed when ROA is utilized.
Results for the long-term leverage
 CAPITAL STRUCTURE 16

In the wake of testing the connection between the use and firm execution for the
whole example, we utilized the long haul use as a variable of intrigue. At the point when here
and now obligation is normally pulled in to help operational movement and fund working
capital, long haul obligation is utilized to back speculation action and capital uses. It is the
long haul obligation that makes future premium installments, which teaches an administrator
as indicated by the free-income speculation. We characterized long haul use as the proportion
of long haul enthusiasm bearing obligation to add up to resources. The aftereffects of the
relapse are exhibited in the Table 4. Reliance amongst use and firm execution additionally
has U-molded shape (as if there should arise an occurrence of normal use) if execution is
measured by ROA or TFP. The main contrast is that if there should be an occurrence of EBIT
edge quadratic term of use is not measurably noteworthy.
Subsequently, we start by observing some vital portions impacting our sodalities'
capital structure and their utilization degree. Our results are shown in table 3, where we test
the impact of a couple of parts on the total obligation over total assets degree. Speak to (1)
proposes a negative sodality between Return on Assets and total obligation degree,
supporting that advantage causes slash down utilize levels. Our result gives copacetic benefit
to the pecking demand theory. Additionally, we in addition discover indicate proposing more
unmistakable firms to have higher utilize degree. This is as per our requirements, since the
divulgences of Antoniou in like way embraced a positive sodality between firm sizes and
utilize levels. Titman and Wessel battle that monster firms are more isolated, thusly they have
less chances of addressing for segment 11. Withal, the instigate portion 11 cost does not on a
to a great degree straightforward level effect use in clearing firms as fast part 11 cost is by
and large settled and decreases as size increments. Our results display that more common
firms, and firms with more inestimably tremendous measure of settled assets on their ideal
position report, slant to have higher utilized degrees. The inquiry could be affected that these
sodalities to have more prevailing security, which enables the credit gave by budgetary store
providers. Our results are other than as indicated by our necessities, since firms with more
unmistakable assets, have a more predominant competency to issue secured obligation. A
firm with enormous measure of settled assets can get at a by and large slash down rate of
enthusiastic immediacy, by giving the security of these great conditions for move overseers
as confirmation. Decelerate additionally broadcasted a positive and vital sodality between
asset great qualities and utilize.
Plans correction, which has been utilized as a center individual for firm movement,
appears to have no key impact on utilize levels of firms-the same applies for the factor charge
rate. The reason is that higher appraisal rates prompts higher responsibility shield benefits, in
this way inspiring higher utilize degrees. Notwithstanding, we don't find affirm empowering
this sodality. Of course, our results prescribe that capital-true blue firms, for instance, IT
firms, appear to have higher utilized degrees. One demystification abaft this contemplate is
that capital-raised firms have higher abundance for whole course of action duty, by prudence
of more pervasive budgetary fundamentals, while collateralizing their purposes of enthusiasm
for access to credit. Unquestionably, show up (1) additionally solidifies a sham, watching out
for the crises year 2008-2011, regardless of the way that we find no affirmation proposing a
refinement between the pre-and the crisis years in sodality with capital structure
determinants.
 CAPITAL STRUCTURE 17

Results for industry sub-samples

At long last we separated our specimen by subsamples as indicated by industry
qualities. All organizations in the example work in 58 parts as indicated by the Nigerian
Classification of Economic Activities. These exercises were accumulated into 10 industry
gatherings, one of which – budgetary administrations – was not thought about. Just use and
squared use relapse coefficients in relapses for every industry are introduced in Table 5. For
the greater part of the ventures use seems to have no effect on firm execution. The main
distinction is where assessed coefficients are exceedingly factually huge in all determinations.
Less critical are the outcomes for transport and vitality segments, however for both these
ventures the conclusion is the same: monetary use contrarily influences firm execution.

Possible endogeneity remedies

Since there could be the dualistic connection amongst use and firm execution (as it is
appeared in Table 1), we performed endogeneity investigation applying Instrumental
Variables approach. We utilized two instrumental factors: normal industry use and substantial
quality of benefits. The first is ascertained as the normal of every single other firm in the
business barring own firm. Thusly of making industry normal permits making inconstancy in
this factor. This variable should connect with firm use, however ought not to have any
immediate effect on firm execution. The second instrumental variable is substance of
benefits, as proposed by Aviation. Utilizing this variable as an instrument can be supported
by the accompanying rationale: unmistakable resources could be utilized as insurance for
drawing in new obligation, so use should increment with substantial quality. We measure
substantial quality as the proportion of unmistakable advantages for ads up to resources.
Keeping in mind the end goal to appraise the coefficient we connected IV estimation strategy,
 CAPITAL STRUCTURE 18

created by Shaffer (2010) for settled impacts board information models. The aftereffects of
the estimation are introduced on the Table 6:

Instrumental factors appear to be legitimate instruments in ROA detail just: we

dismiss the invalid speculation that use is exogenous parameter (low p-esteem in the
endogeneity test), and presume that substance and industry normal are right instruments (as
indicated by Sargan test we don't dismiss invalid theory about the legitimacy of instruments).
In the wake of rectifying for the endogeneity issue, we watch a similar negative and
measurably noteworthy connection amongst use and firm execution. Substance and industry
normal use don't take care of endogeneity issue in EBIT edge and TFP details. In the
principal circumstance we infer that there is no endogeneity issue, yet evaluated coefficients
are not factually huge. So it is difficult to distinguish the connection amongst use and
association's EBIT edge. In the second circumstance Sargan-Hansen test demonstrates that
use is endogeneous variable, yet substantial quality of advantages and normal industry use are
not legitimate instruments.
Propose Research Methods
I thus proposed to direct subjective research as takes after:
1. Financial degrees understanding of pay declarations and accounting reports of
arbitrarily isolated relationship from FTSE 100 London Stocks Exchange UK and Nigeria
Stocks Exchange.
Limitation
The most sizably voluminous circumscription in this paper is the availability of data from
Nigeria Stock Exchange which is then differentiation and the data of Coalesced Kingdom
Stock Exchange. The genuine reason behind such absences of intrigue is a result of how
Nigeria is juvenile country, while, UK is believed to be a made nation.

Time Table/ Plan for Research

1. Descriptive examination of the effects of globalization, money related technique,

financial game-plan and political dangers on Capital Structure and sodality's execution in UK
and Nigeria.
 CAPITAL STRUCTURE 19

Ethical Review Form

The fundamental variable of interest is utilize. As showed up by Rajan we delineated
use as enthusiastic immediacy bearing feeling of obligation in regards to assets degree.
Despite the way that the sodality costs notional speculation predicts a collaborator outcome
of utilization on firm profitability, it may not be extensive for exceptionally obliged firms.
Such firms meet energetic cash related targets which may conflictingly influence execution.
Additionally, sort out sodality among utilize and firm execution is not courageous with the
trade off theory. As demonstrated by this notional speculation, a firm keeps optical discerners
open for the impeccable capital structure, and it is hard to streamline the firm regard if the
sodality between the utilization and the firm execution is brisk. To address these issues, we
relatively joined a squared utilize term. Disregarding that, we will see betoken utilize
(relegate vivacious instantaneousness bearing feeling of obligation in regards to assets
degree) and whole course of action utilize (whole deal imperativeness bearing duty in regards
to mean degree. The oversee reason abaft this is conclusively obligation is pulled in to back
operational activity and generally does not recommend unpredictable interest segments. Of
course, whole game plan obligation presents supervisor to settled part and could be
considered as an arranging area.

Conclusion
The point of the examination was to survey the effect of capital structure on bank
execution in Nigeria. The examination utilized board information for the time of 5 years and
38 banks working in the nation. Sbeiti (2012) contributes to the fact that research on capital
structure is more multifaceted, determinants of the capital structure persist to be investigated
by academic researchers. According to James, the determinants of the structure of capital
differ from one nation to another, and even from different industries in a similar nation
(Chadha & Sharma, 2015).
There are several tools that are introduced to implement an effective capital structure
in the company, ranging from Modigliani's Millers theory to the capital asset pricing model.
Barclays has implemented an effective proportion of debt and equity in the capital structure
of the organization, resulting in an efficient combination of finances. The main objective of
an effective capital structure is to identify the best possible way in which the organization can
reduce the financial cost of the firm, in order to improve its profitability and to offer the best
return to its shareholders on the investment they have made in the company. Therefore, the
financial manager in designing the capital structure of the company must include all the
elements that are made through the execution of the financial decision, this decision includes
the acquisition and merger scenario or when capital is required to support commercial
operations (Gitman & Zutter, 2010).
The examination utilized settled impact relapse model to appraise the connection
between the firm use and firm execution. The discoveries of the examination demonstrate that
banks in Nigeria utilize a bigger number of obligations as their wellspring of fund than value
financing. Nearly, the banks were found to utilize all the more here and now obligations
which are for the most part made out of stores assembled from clients than long haul business
obligations. The model estimation comes about demonstrate a nearness of critical negative
affiliation and causality connection between add up to obligation to value and long haul
obligation to value with bank cost effectiveness and profit for value. This suggests nearness
of negative exchange off between firm use and firm execution. This impact was not seen
 CAPITAL STRUCTURE 20

under here and now obligation to value proportion which showed positive effect of utilizing
client stores and other here and now financing on execution. Then again, the outcomes
indicate noteworthy positive affiliation and causality connection between the utilization of
more obligations to back resource versus firm execution in term of cost effectiveness and
profit for value. The discoveries on firm use versus return on resource did not give
noteworthy causality relationship albeit huge affiliations were seen in a fractional connection.
The outcomes demonstrate that aggregate obligation to value proportion, long haul obligation
to value proportion, and here and now obligation to resource proportion have noteworthy
positive affiliation while here and now obligation to value proportion, add up to obligation to
resource proportion and long haul obligation to resource proportion all have critical negative
relationship with return on resource.

From the examination comes about it was concluded that, the effect of capital structure on
firm execution relies upon the factors and markers that are utilized to inexact capital structure
and execution. The examination comes about demonstrated nearness of tradeoff between the
utilization of obligations and firm execution when capital structure was measured utilizing
the proportion of obligations to value and execution was measured by taken a toll
productivity and profit for value. Negating comes about were watched when capital structure
was measured as the proportion of obligation to resource and when execution was measured
as the proportion of obligation to resource. The examination likewise infers that, banks in
Nigeria like to utilize all the more here and now obligations in type of stores other than
business obligations henceforth despite everything they have an opportunity to exceed
expectations as the obligations to resource proportion was found to have critical positive
effect on return on value. Henceforth business banks in Nigeria have a possibility of utilizing
business obligations to extend their administrations to provincial regions and different
regions with unbanked populace. The discoveries of this examination were predictable with
the majority of past outcomes however did not give a solitary point of view on whether use
has affect on the firm execution. The firm use relies upon the estimation factors thus ought to
be basically evaluated before making speculation.
 CAPITAL STRUCTURE 21

References
Afza, T. & Hussain, A. 2011, “Determinants of Capital Structure: A Case Study of
Automobile Sector of Pakistan”, Interdisciplinary Journal of Contemporary
Research in Business, Vol. 3, no. 1, pp. 1-89.
Ahmad, F. & Abbas, Z. 2011, “Role of Firm’s Level Characteristics in Determining the
Capital Structure of Banks: Evidence from the Pakistan Banks”, Interdisciplinary
Journal of Contemporary Research in Business, Vol. 2, no. 12, pp. 201-216.
Akeem C B. Ediwin T K. Kinjanjui & Kayode A M. 2014, “Effects of Capital Structure on
firm's Performance: Empirical Study of Manufacturing Companies in Nigeria”,
Journal of Finance and Investment Analysis, Vol . 3, no. 4, pp. 39-57.
Akeem C B., Ediwin T K., Kinjanjui & Kayode A M. 2014, Capita Structure :Emperical
Sudy of Manufacturing Copanies in Nigeria”, Journal of Finance and
Investment Analysis, Vol 3, no. 4, pp. 39-57.
Akhtar, S. & Oliver, B. 2009, “Determinants of capital structure for Japanese
multinational and domestic corporations”, International Review of Finance, Vol. 9,
no. 1, pp. 1-26.
Akhtar, S. 2005, “The determinants of capital structure for Australian multinational and
domestic corporations”, The Australian Graduate School of Management, Vol. 30,
no. 1, 321-341.
AL- Shubiri, F. N. 2010, “Analysis of the Relationship between Working Capital Policy and
Operating Risk: An Empirical Study of Jordanian Industrial Companies”,
Investment Management and Financial Innovations, Vol. 7, no. 2,pp. 167-176.
Anwar, W. 2012, “Cross-Industry Determinants of Capital Structure: Evidence from
Pakistani Data”, International Journal of Management & Innovation, Vol. 4, no. 1,
pp. 79-86.
Babalola, A. Y. 2012. “Effects of optimal capital structure on firm performance”, Journal of
Emerging Trend in Economics and Management Sciences, Vol. 3, no. 2, pp. 131-133.
Barclay, M. & Smith, C. 2005, “Capital structure puzzle: The evidence Revised”, Journal of
Applied Corporate Finance, Vol. 17, no. 1, pp. 8-17.
Bauer, P. 2004, “Determinants of capital structure: empirical evidence from the Czech
Republic”, Czech Journal of Economics and Finance, Vol. 54, no.1, pp. 2-21.
Bevan, A. A, & Danbolt, J., 2004. “Testing For Inconsistencies in the Estimation of UK
Capital Structure Determinants”, Applied Financial Economics, Vol. 14, no. 1, pp.
55-66.
Chadha S & Sharma A . K. 2015, “Capital Structure and Firm Performance: Evidence
form India”, SAGE Publication, Vol. 19, no.4, pp. 295-302.
Chen J.J. 2004, “Determinants of Capital Structure of Chinese-listed Companies”, Journal of
Business Research , Vol. 57, no.1, pp. 1341-1351.
 CAPITAL STRUCTURE 22

Cortez, M. A. & Susanto, S. 2012, “The Determinants of Corporate Capital Structure:

Evidence from Japanese Manufacturing Companies”, Journal of International
Business Research, Vol. 11, no. 1, pp. 122-134.
Dang, V. A. 2013, “Testing capital structure theories using error correction models: Evidence
from the UK, France and Germany”, Applied Economics, Vol. 45, no. 2, pp. 171-190.
Frank & Goyal. 2003, “Testing the Pecking Order Theory of Capital Structure”, Journal of
Financial economics, Vol. 67, no. 2, pp. 217-248.
Gitman, L. J., & Zutter, C. J. 2010, “Principles of managerial finance”, (13th ed.). New York:
Prentice Hall.
Graham, J. & Harvey, C. 2001, “The theory and practice of corporate finance: evidence from
the field”, Journal of Financial Economics, Vol. 60, pp. 187-243.
Graham. J. R. Hazarika. S & Narasinhan K. 2011. “Finacial Distress in a Great Depression”,
Financial Management, Vol. 40, no. 4, pp 821-844.
Ho-Yin Y. 2011, “Determinants of Corporate Capital Structure Under Different Debt
Maturities”, International Research Journal of Finance & Economics, Vol. 66, no. 1,
pp. 99-106.
Kayo, E. K., & Kimura, H. 2011. “Hierarchical determinants of capital structure”, Journal of
Banking & Finance, Vol. 35, no. 2, 358-371.
Keshtkar, R., Valipour, H., & Javanmard, A. 2012, “Determinants of Corporate Capital
Structure Under Different Debt Maturities: Empirical Evidence from Iran”,
International Research Journal of Finance & Economics, Vol. 90, no. ,pp. 46-53.
Khan, Z. S. 2010, “Determinants of Capital Structure: Case of Listed Paint Manufacturing
Companies”, Interdisciplinary Journal of Contemporary Research in Business, Vol.
2, no. 6, pp. 253-271.
Lim, T. C. 2012, “Determinants of Capital Structure Empirical Evidence from Financial
Services Listed Firms in China”, International Journal of Economics and Finance,
Vol. 4, no. 3, pp. 191-203.
Liu, Y. & Ren, J. 2009, “An Empirical Analysis on the Capital Structure of Chinese
Listed IT Companies”, International Journal of Business and Management, Vol.
4, no. 1, pp. 46–51.
Myers, S. C., 2001. “Capital structure”. The Journal of Economic Perspectives, Vol. 15, no.
2, pp. 81-102.
Nguyen, T. C. & Nguyen, T. C. 2012, “The Factors Affecting Capital Structure for each
Group of Enterprises in each Debt Ratio Threshold: Evidence from Vietnam's
Seafood Processing Enterprises”, International Research Journal of Finance &
Economics, Vol. 94, no. 1,pp. 23-37.