How Firm Specific Characteristics Determine Capital Structure: Empirical Evidence

Authors

Jehad S. Bani-Hani, Jadara UniversityFollow
هيثم حجازي, جامعة الزيتونةFollow
أسامة هياجنة, جامعة البلقاءFollow

Abstract

The purpose of this study is to investigate how firm-specific characteristics determine capital structure as empirical evidence on Jordanian firms listed on Amman exchange market. In which study covers 80 firms (55) manufacturing and (25) service firms for the period (2001 - 2006). The study used ordinary least squares (OLS) regression technique to provide an evidence how firm—specific characteristics presented by tangible assets, size, growth, profitability and risk which is derived from tradeoff and pecking order theories to determine capital structure presented by short term debt ratio, long term debt ratio and total debt ratio. Furthermore, the regression results proved that firm characteristics play important role to determine capital structure.

Recommended Citation

Bani-Hani, Jehad S.; حجازي, هيثم; and هياجنة, أسامة (2009) "How Firm Specific Characteristics Determine Capital Structure: Empirical Evidence," Al-Balqa Journal for Research and Studies البلقاء للبحوث والدراسات: Vol. 13: Iss. 2, Article 7.
Available at: https://digitalcommons.aaru.edu.jo/albalqa/vol13/iss2/7