Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data

This study explores the factors determining the capital structure of UK listed companies and their impact on different debt levels. In order to investigate the factors influencing the capital structure decisions, a panel data set of 191 non-financial firms across 9 different industries on FTSE350 fr...

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Main Author: Vassiliades, Constantinos
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27583/
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author Vassiliades, Constantinos
author_facet Vassiliades, Constantinos
author_sort Vassiliades, Constantinos
building Nottingham Research Data Repository
collection Online Access
description This study explores the factors determining the capital structure of UK listed companies and their impact on different debt levels. In order to investigate the factors influencing the capital structure decisions, a panel data set of 191 non-financial firms across 9 different industries on FTSE350 from 2004-2013 was analysed. Total leverage, long-term leverage and short-term leverage served as the dependent variables and were all computed based on their book value. The explanatory variables such as non-debt tax shields, profitability, size, tangibility, growth, liquidity and industry classification were chosen in accordance to the literature and they were thoroughly investigated. Industry classification was examined by one-way analysis of variance (ANOVA), while for the rest of the determinants the Fixed Effect regression model was used. The empirical evidences show that non-debt tax shields, profitability, tangibility, growth and liquidity are inversely related to total leverage, while industry classification and size are positively related. Therefore, this dissertation does not succeed in identifying a specific capital structure theory that can totally reflect on the financing decisions taken from listed firms in the UK.
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format Dissertation (University of Nottingham only)
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spelling nottingham-275832022-03-21T16:11:54Z https://eprints.nottingham.ac.uk/27583/ Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data Vassiliades, Constantinos This study explores the factors determining the capital structure of UK listed companies and their impact on different debt levels. In order to investigate the factors influencing the capital structure decisions, a panel data set of 191 non-financial firms across 9 different industries on FTSE350 from 2004-2013 was analysed. Total leverage, long-term leverage and short-term leverage served as the dependent variables and were all computed based on their book value. The explanatory variables such as non-debt tax shields, profitability, size, tangibility, growth, liquidity and industry classification were chosen in accordance to the literature and they were thoroughly investigated. Industry classification was examined by one-way analysis of variance (ANOVA), while for the rest of the determinants the Fixed Effect regression model was used. The empirical evidences show that non-debt tax shields, profitability, tangibility, growth and liquidity are inversely related to total leverage, while industry classification and size are positively related. Therefore, this dissertation does not succeed in identifying a specific capital structure theory that can totally reflect on the financing decisions taken from listed firms in the UK. 2014 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27583/1/ConstantinosVassiliadesDissertation.pdf Vassiliades, Constantinos (2014) Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Vassiliades, Constantinos
Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title_full Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title_fullStr Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title_full_unstemmed Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title_short Determinants of Capital Structure: An Empirical Investigation from UK listed firm panel data
title_sort determinants of capital structure: an empirical investigation from uk listed firm panel data
url https://eprints.nottingham.ac.uk/27583/