Determinants of Capital Structure: Empirical Evidence from UK Companies

Capital structure of the company is regarded as one of the most controversial topic during the past 40 years, the influencing factors are complex and the impact of each determinant on firm value is not always obvious. The purpose of the dissertation is to examine the main determinants of capital str...

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Main Author: Bian, Xiaoxuan
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26551/
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author Bian, Xiaoxuan
author_facet Bian, Xiaoxuan
author_sort Bian, Xiaoxuan
building Nottingham Research Data Repository
collection Online Access
description Capital structure of the company is regarded as one of the most controversial topic during the past 40 years, the influencing factors are complex and the impact of each determinant on firm value is not always obvious. The purpose of the dissertation is to examine the main determinants of capital structure in UK companies. The sample data is collected in FTSE 350 during 20 years from 1993 to 2012. A panel data regression for 237 non-financial companies from 10 industries was generated. The contribution of this paper is to provide a further insight into the capital structure within UK industries and discuss its influencing factors. ANOVA and panel data regression are used to analyze the impact of selected influencing factors on companies’ capital structure. Specifically speaking, the long-term and short-term leverage is introduced as the dependent variables. Profitability, firm size, growth opportunity, non-debt tax shields, tangibility and the industrial factors are used as the independent variables. However, it seems that there is no single theory or principle can explain the financial decisions of the companies. Thus, the influencing factors of companies’ capital structure still remain a puzzle.
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spelling nottingham-265512017-10-19T13:25:57Z https://eprints.nottingham.ac.uk/26551/ Determinants of Capital Structure: Empirical Evidence from UK Companies Bian, Xiaoxuan Capital structure of the company is regarded as one of the most controversial topic during the past 40 years, the influencing factors are complex and the impact of each determinant on firm value is not always obvious. The purpose of the dissertation is to examine the main determinants of capital structure in UK companies. The sample data is collected in FTSE 350 during 20 years from 1993 to 2012. A panel data regression for 237 non-financial companies from 10 industries was generated. The contribution of this paper is to provide a further insight into the capital structure within UK industries and discuss its influencing factors. ANOVA and panel data regression are used to analyze the impact of selected influencing factors on companies’ capital structure. Specifically speaking, the long-term and short-term leverage is introduced as the dependent variables. Profitability, firm size, growth opportunity, non-debt tax shields, tangibility and the industrial factors are used as the independent variables. However, it seems that there is no single theory or principle can explain the financial decisions of the companies. Thus, the influencing factors of companies’ capital structure still remain a puzzle. 2013-09-17 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26551/1/dissertation_XIAOXUAN_BIAN.pdf Bian, Xiaoxuan (2013) Determinants of Capital Structure: Empirical Evidence from UK Companies. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Bian, Xiaoxuan
Determinants of Capital Structure: Empirical Evidence from UK Companies
title Determinants of Capital Structure: Empirical Evidence from UK Companies
title_full Determinants of Capital Structure: Empirical Evidence from UK Companies
title_fullStr Determinants of Capital Structure: Empirical Evidence from UK Companies
title_full_unstemmed Determinants of Capital Structure: Empirical Evidence from UK Companies
title_short Determinants of Capital Structure: Empirical Evidence from UK Companies
title_sort determinants of capital structure: empirical evidence from uk companies
url https://eprints.nottingham.ac.uk/26551/