DETERMINANTS OF CAPITAL STRUCTURE OF BANKS: EVIDENCE FROM SUB-SAHARA AFRICA
Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 4
Abstract
This study seeks to examine the determinants of capital structure of banks in Sub-Sahara Africa. This study has employed the use of panel data techniques to analyze the determinants of capital structure of banks in sub-Sahara Africa The dependent variables used in the study were short-term debt ratio (STDR), long-term debt ratio (LTDR) and the total debt ratio (TDAR). The independent variables were: return on asset (ROA), asset tangibility (TANG), Size of the bank (SIZE), growth rate of total assets (GROWTH), corporate marginal tax rate (TAX ), GDP growth rate (GDPGR), interest on loans (INTEREST), inflation rate (INFLR)The results from Levin-Lin-Chu and Im-pesaran-shin unit root test show that all the variables were stationary in levels. The results also indicate that, the return on asset, size, asset tangibility, growth rate of banks and inflation rates are statistically significant in determining the capital structure of banks in Sub-Sahara Africa. However, corporate marginal tax rate, GDP growth rate and the interest rate on loans are not statistically significant in determining banks capital structure in Sub-Sahara Africa.
Authors and Affiliations
Ebenezer Bugri Anarfo| GIMPA Business School Ghana Institute of Management and Public Administration, Achimota, Accra, Ghana
Keywords
Related Articles
- EP ID EP2191
- DOI -
- Views 379
- Downloads 33
BANK CONCENTRATION AND ENTERPRISE BORROWING COST RISK: EVIDENCE FROM ASIAN MARKETS
Based on data from nine Asian markets, this study investigates the relationship between bank concentration and the borrowing cost risk of firms. Over the study period, the concentration of banks increased in the develope...
Favorable and Unfavorable Conditions for Innovation: Some Cross Country Evidence
The paper employs cross country regression analysis to estimate the effect of democracy and income inequality, adjusting for the level of income and other variables, on country innovation. It finds that both of these var...
SOCIAL NETWORKING A SOURCE FOR DEVELOPING ENTREPRENEURIAL INTENTIONS AMONG ENTREPRENEURS: A CASE OF MULTAN
The present research aims at measuring how social networking is a source of developing entrepreneurial intentions among entrepreneurs. The study was designed with the intent to find the components of social networking wh...
Examining CSR Reporting and Economic Crisis a Study of GRI Reporting Companies
This paper explores the relationship between CSR Reporting and the last global economic crisis that started in the late half of the year 2007. The sample of the study is composed of companies included in the "GRI Report...
MICROFINANCE AND WOMEN EMPOWERMENT IN MADINA IN ACCRA, GHANA
Among the main objectives of microfinance intervention is to help women entrepreneurs grow their businesses and hence enhance their socio-economic well-being. The study therefore was conducted to assess the effect of mic...