This study aims to explore the various factors that determine the choice of financing sources for public limited companies in the automobile sector of Pakistan. The impact of firms’ profitability, liquidity, tangibility, size and earning variability on capital structure of KSE listed automobile companies is investigated. Panel data of ten out of sixteen companies for five years (2008-2012) is studied through regression analysis. It is found that capital structure has negative correlation with profitability, liquidity, size and tangibility, while it is positively correlated with earning variability. The association with profitability and liquidity is found to be statistically significant while that with size, tangibility and earning variability is reported as statistically insignificant.

https://eujournal.org/index.php/esj/article/view/3369/3133

Capital structure determinants of kse listed automobile companies

The purpose of this study was to determine the role of corporate governance, dividend policy and capital structure on ownership structure toward the firm value. The study was conducted to manufacturing firms listed at the Indonesia Stock Exchange during 2008-2011. The results showed that institutional majority ownership structure is the cause of agency problems, which can be mitigated by corporate governance mechanism and dividend policy, thereby increasing the value of the of the company. Capital structure can be used as a mechanism to reduce agency problems but cannot affect the value of the company due to the implementation of the company's corporate governance resulting in increasing debt in the capital structure and dividend policy. Dividend policy and capital structure is not a substitute nor complementary in reducing agency problems. Keywords: Ownership Structure, Corporate Governance, Capital Structure, Dividend Policy, Firm Value

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The Role of Corporate Governance, Dividend Policy, and Capital Structure on Ownership Structure Toward the Firm Value

The corporate financial performance is one of the measurement instrument whether the company is sustainable. This study aims to determine the effect of financial policy and public ownership on corporate financial performance with Independence of commissioners as a moderating variable in mining companies listed on Indonesia Stock Exchanges. This research uses a quantitative research model using secondary data. The data in this study were processed by the Moderating Regression Analysis (MRA) method supported by the IBM SPSS and Microsoft Excel programs as support software with data analysis techniques in the form of a classic assumption test and R2 test, F test, and t test. The population in this study are companies that have reported annual reports consistently during the 2014-2017 period. This study used a purposive sampling technique and obtained as many as 19 companies in accordance with predetermined criteria. The results of this study indicate that financial policy proxied by debt policy (DER) has a significant and positive effect on corporate financial performance, public ownership has no significant effect on corporate financial performance, independence commissioners strengthen the relationship between financial policy on corporate financial performance and independence commissioners do not has a moderating role between the relationship between Public Ownership and corporate financial performance. This study uses data from mining sector companies, it is recommended for further research to use other sectors such as: Property & Real Estate Sector, Manufacturing Sector, and others listed on the Indonesia Stock Exchange. The implications of this study for the company management, this research can provide input to the company to be able to choose and use an independent commissioner who fulfills expertise in the financial and business fields of his company in order to make a decision on his company's financial policy. Keywords: Independence of Commissioners, Financial Policy, Public Ownership, Corporate Financial Performance .

https://trijurnal.lemlit.trisakti.ac.id/ijca/article/download/7517/5999

The moderating effect of independent commisioners on financial policy and public ownership toward corporate financial performance

The purpose of this study was to analyze the factors affecting capital structure in Indonesia. The variables used were DER as the dependent variable and as independent variables are profitability, growth opportunity, fixed asset tangibility, size, dividend payout ratio and shortterm debt to total assets. The sample used in this study is a company registered in LQ-45. And selected by using purposive sampling. Thus obtained 38 companies as a sample. The analytical method used is linear regression. The results obtained from this study is the variable profitability, tangibility fixed assets and short term debt to total assets that have a significant influence 5%. While the growth opportunity and size variables have a significant influence 10%. While the variable dividend payout ratio does not have a significant influence.

The Determinants of the Capital Structure : Empirical Evidence from Indonesian Stock Exchange Companies

This research examine the factors that affecting firm value (Tobin’s Q), and whether the growth opportunity could enhance the relationship between independent variables and firm value. there are four independend variables used in this research which are financing decision, dividend policy, profitability and liquidity. Growth opportunity’s proxy with MVE/BVE as moderating variable.
This research use quantitative approach, in which sample used is 60 listed companies in LQ-45 index for period 2010-2012 consecutively. There are three models used in this research, the first model was conducted using multiple regression analysis, the second model was using multiple regression analysis and the third model is using moderate regression. Calculation and hypotheses testing is using EViews statistic 6.10.
The result shows that financing decision have the negative relationship toward the firm value. Liquidity and dividend policy has non-relationship toward the firm value. Profitability has the positive relationship toward the firm value. In addition, growth opportunity act as quasi moderator in relationship between each of financing decision, profitability, and liquidity toward firm value. But, growth opportunity is unable to moderate the relationship between dividend policy and firm value.

The Moderating Effect Of Growth Opportunities On The Relationship Between Financing Decision, Dividend Policy, Profitability And Liquidity Toward Firm Value

The Study collects panel data of listed firms in New York Stock and Shanghai Stock Exchanges during 1992 to 2008. The data are used to perform panel regression estimates for firms in each stock market. The main purpose is to compare the decision on dividend payout of listed firms in the two stock markets. The results from fixed effect estimates show that factors that can explain dividend payout of firms in New York Stock Exchange poorly explain dividend payout of firms in Shanghai Stock Exchange. This paper adds to the literature in that it provides an evidence of difference in dividend policy of firms between advanced and emerging stock markets. For policymakers in the Chinese economy, implementation of measures to enhance the advancement of bond market is necessary. Additionally, firms in Shanghai Stock Exchange should adjust their capital structure to provide room for investors to diversify and adjust their portfolios of stocks and bonds.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2196350_code1639922.pdf?abstractid=2196350&mirid=3

Capital Structure, Cost of Debt and Dividend Payout of Firms in New York and Shanghai Stock Exchanges

The Study collects panel data of listed firms in New York Stock and Shanghai Stock Exchanges during 1992 to 2008. The data are used to perform panel regression estimates for firms in each stock market. The main purpose is to compare the decision on dividend payout of listed firms in the two stock markets. The results from fixed effect estimates show that factors that can explain dividend payout of firms in New York Stock Exchange poorly explain dividend payout of firms in Shanghai Stock Exchange. This paper adds to the literature in that it provides an evidence of difference in dividend policy of firms between advanced and emerging stock markets. For policymakers in the Chinese economy, implementation of measures to enhance the advancement of bond market is necessary. Additionally, firms in Shanghai Stock Exchange should adjust their capital structure to provide room for investors to diversify and adjust their portfolios of stocks and bonds. Keywords : Dividend payout; debt financing; equity financing; cost of debt; panel regression; stock markets JEL Classifications : G35; G30

/pdf/capital-structure-cost-of-debt-and-dividend-payout-of-firms-3t05pi5xd6.pdf

Jun Jiang

Papers

Capital Structure, Cost of Debt and Dividend Payout of Firms in New York and Shanghai Stock Exchanges

Capital Structure, Cost of Debt and Dividend Payout of Firms in New York and Shanghai Stock Exchanges