The Effect of Capital Structure on Financial Performance: Evidence from Selected Real Estate Firms in Ethiopia
| dc.contributor.advisor | Hawlet Ahmed (PhD) | |
| dc.contributor.author | Hika Terefe | |
| dc.date.accessioned | 2026-03-03T05:10:33Z | |
| dc.date.available | 2026-03-03T05:10:33Z | |
| dc.date.issued | 2025-09 | |
| dc.description.abstract | This study examines the effect of capital structure on financial performance of selected real estate firms in Ethiopia. The study is conducted on seven real estate firms across five years period, 2020-2024. Those firms are selected purposively among real estate firms operating in the sector. The quantitative data is analyzed using fixed effects regression model and qualitative data from interview with finance officers and executives are analyzed thematically. Findings of the research shows that ages of the firms’ has significant positive effect on the firms’ financial performance. It indicates the importance of experience and accumulated resources in the sector. Debt to Equity ratio, as indicator of capital structure shows negative and insignificant relationship with financial performance. Growth opportunities shows negative relationship which is also statistically insignificant. On the other hand, the study indicates positive relationship between firms’ size (total assets) and financial performance. Thematic analysis shows that real estate sectors are facing various challenges such as macroeconomic volatility, inflation, absence of financing options such as capital markets, long term financing and so on. It is concluded that balanced use of internal sources, curious leverage and strategic financing enhanced financial performance. The research contributes valuables insights to policy makers, industry practitioners and future scholars on financing practices in developing economy | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7764 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Capital Structure | |
| dc.subject | Debt-equity ratio | |
| dc.subject | return on equity | |
| dc.subject | real estate | |
| dc.title | The Effect of Capital Structure on Financial Performance: Evidence from Selected Real Estate Firms in Ethiopia | |
| dc.type | Thesis |