Determinants of Capital Structure Decision; Evidence from Foreign Owned Manufacturing Companies in Ethiopia
| dc.contributor.advisor | Worku, Temesgen (PHD) | |
| dc.contributor.author | Teka, Daniel | |
| dc.date.accessioned | 2021-07-22T08:42:53Z | |
| dc.date.accessioned | 2023-11-04T07:58:38Z | |
| dc.date.available | 2021-07-22T08:42:53Z | |
| dc.date.available | 2023-11-04T07:58:38Z | |
| dc.date.issued | 2021-03 | |
| dc.description.abstract | The aim of this study is to investigate the determinants of capital structure decision in foreign owned manufacturing companies in Ethiopia, the study hypothesizes based on different theories of capital structure mainly the trade off and pecking order theory, the study used nine variables namely Leverage as its dependent variable and Profitability, Tangibility, Growth, Liquidity, Earning Volatility, Size, Age and Inflation Rate as its explanatory variables, the study was made by collecting panel data and used audited financial statement of thirteen foreign owned manufacturing companies spanning five years starting from 2015 to 2019 the study employed random effect panel regression model in order to examine the determinants of capital structure decision the models fitness was tested for heteroscedasticity, autocorrelation, and normality and passed all the tests, the results of the study shows that the results show that pecking order theory is prominently important in explaining the capital structure decision of foreign owned manufacturing companies it also showed that, profitability, growth, liquidity, age and size were important variables that influence foreign owned manufacturing companies capital structure decision . On the other hand, the result showed tangibility of asset, earning volatility and the macroeconomic indicator inflation were insignificant, the result of the study also showed that there is a negative relationship between profitability, liquidity, age with companies leverage level and a positive relationship between growth and size with companies leverage level for foreign owned manufacturing companies in Ethiopia. Therefore, managers of this companies should consider the impact of these significant variables in determining their financing needs so as to maximize the value of the company and meet the overall goal of profit maximization. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/27314 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Capital Structure, Determinate, Foreign Owned, Manufacturing | en_US |
| dc.title | Determinants of Capital Structure Decision; Evidence from Foreign Owned Manufacturing Companies in Ethiopia | en_US |
| dc.type | Thesis | en_US |