Determinants of Capital Structure: Evidence from UK Listed Company Panel Data
This paper investigates the determinants of the UK listed company capital structure and their impacts on different debt maturity. The analysis was carried out using a panel data set of 230 non-financial companies in the FTSE 350 index from 2002 to 2011. In addition, a set of 6 theoretical determinan...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2012
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| Online Access: | https://eprints.nottingham.ac.uk/26042/ |
| _version_ | 1848793102013169664 |
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| author | Trinh, Ngoc Luong |
| author_facet | Trinh, Ngoc Luong |
| author_sort | Trinh, Ngoc Luong |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper investigates the determinants of the UK listed company capital structure and their impacts on different debt maturity. The analysis was carried out using a panel data set of 230 non-financial companies in the FTSE 350 index from 2002 to 2011. In addition, a set of 6 theoretical determinants as outlined by existing literature including: asset structure, firm size, growth opportunities, profitability, liquidity and non-debt tax shields was used to test their relationships with different debt measures. In addition, one-way ANOVA analysis is adopted to test the effect of industry classification on the firm leverage. The results show that asset structure, firm size, growth opportunities and non-debt tax shields are negatively related to leverage while profitability and liquidity are positively correlated with leverage. The empirical evidence hence fails to reasonably support a specific capital structure theory which can fully explain the UK corporate financing decisions. Thus we believe that a dynamic model which can incorporate both components of trade-off and pecking order theory would provide a fruitful justification not only for the UK experience but also for future capital structure studies in general. |
| first_indexed | 2025-11-14T18:54:57Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-26042 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:54:57Z |
| publishDate | 2012 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-260422017-10-19T13:16:05Z https://eprints.nottingham.ac.uk/26042/ Determinants of Capital Structure: Evidence from UK Listed Company Panel Data Trinh, Ngoc Luong This paper investigates the determinants of the UK listed company capital structure and their impacts on different debt maturity. The analysis was carried out using a panel data set of 230 non-financial companies in the FTSE 350 index from 2002 to 2011. In addition, a set of 6 theoretical determinants as outlined by existing literature including: asset structure, firm size, growth opportunities, profitability, liquidity and non-debt tax shields was used to test their relationships with different debt measures. In addition, one-way ANOVA analysis is adopted to test the effect of industry classification on the firm leverage. The results show that asset structure, firm size, growth opportunities and non-debt tax shields are negatively related to leverage while profitability and liquidity are positively correlated with leverage. The empirical evidence hence fails to reasonably support a specific capital structure theory which can fully explain the UK corporate financing decisions. Thus we believe that a dynamic model which can incorporate both components of trade-off and pecking order theory would provide a fruitful justification not only for the UK experience but also for future capital structure studies in general. 2012-09-21 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26042/1/Dissertation-2012.pdf Trinh, Ngoc Luong (2012) Determinants of Capital Structure: Evidence from UK Listed Company Panel Data. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Trinh, Ngoc Luong Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title | Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title_full | Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title_fullStr | Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title_full_unstemmed | Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title_short | Determinants of Capital Structure: Evidence from UK Listed Company Panel Data |
| title_sort | determinants of capital structure: evidence from uk listed company panel data |
| url | https://eprints.nottingham.ac.uk/26042/ |