The Determinants of Capital Structure: The Case of Fdi Companies in Amhara Region

Nigus Almaw

dc.contributor.author	Nigus Almaw
dc.date.accessioned	2020-10-20T07:03:22Z
dc.date.available	2020-10-20T07:03:22Z
dc.date.issued	2020-10
dc.identifier.uri	http://hdl.handle.net/123456789/11436
dc.description.abstract	This study investigates the determinants of the capital structure of FDI companies in Amhara region. The study used a fixed effect regression model. In connection with this, the study adopted a quantitative approach and hence, to discover what determines capital structure, seven explanatory variables (Growth, Tangibility, Profitability, Age, Size, Liquidity and Tax Shield) were selected and regressed against the capital structure measure (Debt to Asset Ratio). Specifically, the data required for the variables was collected from the financial statements of 7 sample FDI companies for a period of 2009-2019. The major findings of the study revealed that Tangibility, profitability, size, and liquidity variables are the significant determinants of capital structure in the case of FDI companies of Amhara region. In addition to this, the two variables (tangibility and size) established a positive relationship and the remaining five variables (growth, profitability, age, taxshield and liquidity) showed a negative correlation with debt to asset ratio. Furthermore, it is also revealed that there is consistency between growth and static trade-off, and agency cost theory; tangibility and pecking order and agency cost theory; profitability and Pecking order theory; size and agency cost theory; liquidity and pecking order theory in the case of FDI companies in Amhara region.	en_US
dc.language.iso	en	en_US
dc.subject	ACCOUNTING AND FINANCE	en_US
dc.title	The Determinants of Capital Structure: The Case of Fdi Companies in Amhara Region	en_US
dc.type	Thesis	en_US