Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution
Different industry-specific and macro-economic factors influence the capital structure of microfinance institutions (MFI). So, the objective of this study is to identify industry-specific determinants of capital structure with the selected branch of Sidama MFI, Sidama region, Ethiopia. To this end,...
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| Format: | Article |
| Language: | English |
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Master Program in Economics, Graduate Program of Universitas Jambi
2021-08-01
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| Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| Subjects: | |
| Online Access: | https://online-journal.unja.ac.id/JES/article/view/12221 |
| _version_ | 1811228640260653056 |
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| author | Alemayehu Taddese |
| author_facet | Alemayehu Taddese |
| author_sort | Alemayehu Taddese |
| collection | DOAJ |
| description | Different industry-specific and macro-economic factors influence the capital structure of microfinance institutions (MFI). So, the objective of this study is to identify industry-specific determinants of capital structure with the selected branch of Sidama MFI, Sidama region, Ethiopia. To this end, the researcher employed a quantitative research approach with an explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The secondary data were collected from Sidama MFIs consolidated and audited financial statements from 2009 to 2019 G.C. Then, both descriptive and inferential statistical analysis has been done. The researcher employed a regression analysis model to identify the effect of five explanatory variables on capital structure measured through debt to equity ratio. Thus, the result of regression analysis showed that out of five independent variables incorporated in the model, all five variables such as growth (negative), profitability (positive), firm size (positive), earning volatility (positive), and asset tangibility (positive) and statistically significant respectively. This study recommends that the microfinance institutions at all company levels improve debt capacity in proportion to asset tangibility more than the current status. |
| first_indexed | 2024-04-12T10:01:25Z |
| format | Article |
| id | doaj.art-eb6d1293ee1849f585fe24622961b448 |
| institution | Directory Open Access Journal |
| issn | 2338-4603 2355-8520 |
| language | English |
| last_indexed | 2024-04-12T10:01:25Z |
| publishDate | 2021-08-01 |
| publisher | Master Program in Economics, Graduate Program of Universitas Jambi |
| record_format | Article |
| series | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
| spelling | doaj.art-eb6d1293ee1849f585fe24622961b4482022-12-22T03:37:34ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202021-08-019310.22437/ppd.v9i3.1222125881Determinants of capital structure: Evidence from Sidama credit and saving microfinance institutionAlemayehu Taddese0Hawassa University, EthiopiaDifferent industry-specific and macro-economic factors influence the capital structure of microfinance institutions (MFI). So, the objective of this study is to identify industry-specific determinants of capital structure with the selected branch of Sidama MFI, Sidama region, Ethiopia. To this end, the researcher employed a quantitative research approach with an explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The secondary data were collected from Sidama MFIs consolidated and audited financial statements from 2009 to 2019 G.C. Then, both descriptive and inferential statistical analysis has been done. The researcher employed a regression analysis model to identify the effect of five explanatory variables on capital structure measured through debt to equity ratio. Thus, the result of regression analysis showed that out of five independent variables incorporated in the model, all five variables such as growth (negative), profitability (positive), firm size (positive), earning volatility (positive), and asset tangibility (positive) and statistically significant respectively. This study recommends that the microfinance institutions at all company levels improve debt capacity in proportion to asset tangibility more than the current status.https://online-journal.unja.ac.id/JES/article/view/12221Capital structureCreditMicrofinance institution |
| spellingShingle | Alemayehu Taddese Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Capital structure Credit Microfinance institution |
| title | Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution |
| title_full | Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution |
| title_fullStr | Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution |
| title_full_unstemmed | Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution |
| title_short | Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution |
| title_sort | determinants of capital structure evidence from sidama credit and saving microfinance institution |
| topic | Capital structure Credit Microfinance institution |
| url | https://online-journal.unja.ac.id/JES/article/view/12221 |
| work_keys_str_mv | AT alemayehutaddese determinantsofcapitalstructureevidencefromsidamacreditandsavingmicrofinanceinstitution |