THE DETERMINANTS OF THE FINANCING DECISIONS OF LISTED AND NON-LISTED FIRMS IN GHANA
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 7
Abstract
The study examines the financing decisions of 19 listed companies in comparison with 16 non-listed companies in Ghana. The study tests some hypotheses related to capital structure determinants and debt policy decisions. The study finds support for the pecking order hypothesis across all firms. The free cash flow hypothesis holds for long-term debt decisions across firms but not the capital structure decisions. All forms of debt policy decisions are consistent with the matching principle except non-listed firms’ long term debt. The study does not find any significant differences between listed and non-listed firms in the application of debt. Policy recommendations are provided.
Authors and Affiliations
Alhassan Andani| Department of Mathematics, University for Development Studies (UDS), P O Box 24, Navrongo, Ghana, Seidu Al-hassan| Centre for Continuing Education and Interdisciplinary Research, University for Development Studies (UDS) P O Box TL 1350, Tamale, Ghana.
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