Capital structure and firms performance: Evidence from Kuwait

The purpose of this study is to examine the impact of capital structure on the performance of 192 firms listed on the stock exchange of Kuwait, covering from year 2009 to 2013. There are very little empirical studies in the existing literature that investigate the influence of capital structure on p...

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Main Author:	Menacer, Abdesslam
Format:	Thesis
Language:	eng eng
Published:	2014
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/4568/1/s813034.pdf https://etd.uum.edu.my/4568/2/s813034_abstract.pdf
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id	my-uum-etd.4568
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Adzis, Azira
topic	HG Finance
spellingShingle	HG Finance Menacer, Abdesslam Capital structure and firms performance: Evidence from Kuwait
description	The purpose of this study is to examine the impact of capital structure on the performance of 192 firms listed on the stock exchange of Kuwait, covering from year 2009 to 2013. There are very little empirical studies in the existing literature that investigate the influence of capital structure on performance of Kuwaiti firms. Following previous studies, this study hypothesizes that capital structure will positively influence the performance of Kuwaiti firms. In this respect, capital structures are measured by the total debt to equity ratio (TDE) and total debt to assets ratio (TDA). Meanwhile, the performance variables are measured by the return on assets (ROA) and return on equity (ROE). This study also includes firm specific variables as control variables such as capital expenditure to sales, sales growth, and firm size. By using pooled OLS estimation, the results indicate that there is a positive and significant relationship between TDE and ROE, while TDA is negatively but significantly related with the ROE. Then, the findings show a positive but insignificant impact between TDE and ROA, whereas TDA is negatively and insignificantly related with ROA. The findings also reveal that firm specific variables such as capital expenditure to sales, firm size, and sales growth demonstrate a significant and positive relationship with the ROA and ROE.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Menacer, Abdesslam
author_facet	Menacer, Abdesslam
author_sort	Menacer, Abdesslam
title	Capital structure and firms performance: Evidence from Kuwait
title_short	Capital structure and firms performance: Evidence from Kuwait
title_full	Capital structure and firms performance: Evidence from Kuwait
title_fullStr	Capital structure and firms performance: Evidence from Kuwait
title_full_unstemmed	Capital structure and firms performance: Evidence from Kuwait
title_sort	capital structure and firms performance: evidence from kuwait
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2014
url	https://etd.uum.edu.my/4568/1/s813034.pdf https://etd.uum.edu.my/4568/2/s813034_abstract.pdf
_version_	1747827756199051264
spelling	my-uum-etd.45682022-06-02T03:19:04Z Capital structure and firms performance: Evidence from Kuwait 2014 Menacer, Abdesslam Abdul Adzis, Azira Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance The purpose of this study is to examine the impact of capital structure on the performance of 192 firms listed on the stock exchange of Kuwait, covering from year 2009 to 2013. There are very little empirical studies in the existing literature that investigate the influence of capital structure on performance of Kuwaiti firms. Following previous studies, this study hypothesizes that capital structure will positively influence the performance of Kuwaiti firms. In this respect, capital structures are measured by the total debt to equity ratio (TDE) and total debt to assets ratio (TDA). Meanwhile, the performance variables are measured by the return on assets (ROA) and return on equity (ROE). This study also includes firm specific variables as control variables such as capital expenditure to sales, sales growth, and firm size. By using pooled OLS estimation, the results indicate that there is a positive and significant relationship between TDE and ROE, while TDA is negatively but significantly related with the ROE. Then, the findings show a positive but insignificant impact between TDE and ROA, whereas TDA is negatively and insignificantly related with ROA. The findings also reveal that firm specific variables such as capital expenditure to sales, firm size, and sales growth demonstrate a significant and positive relationship with the ROA and ROE. 2014 Thesis https://etd.uum.edu.my/4568/ https://etd.uum.edu.my/4568/1/s813034.pdf text eng public https://etd.uum.edu.my/4568/2/s813034_abstract.pdf text eng public masters masters Universiti Utara Malaysia Abbadi, M., & Abu-Rub, N. (2012). The effect of capital structure on the performance of Palestinian financial institutions. 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Capital structure and firms performance: Evidence from Kuwait

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