Is there an optimal financial structure? : some evidence from Singapore listed companies.
In this study , we investigated the influence industry class , market forces and size have on the capital structure of firms listed on the Stock Exchange of Singapore Mainboard Through our research , we hope to contribute to the teaching and research of finance as well as to help managers in designi...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/51862 |
| _version_ | 1811681381418270720 |
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| author | Chng, Jong Ling. Lee, Vincent Hong Yong. Seah, Kim Yeow. |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Chng, Jong Ling. Lee, Vincent Hong Yong. Seah, Kim Yeow. |
| author_sort | Chng, Jong Ling. |
| collection | NTU |
| description | In this study , we investigated the influence industry class , market forces and size have on the capital structure of firms listed on the Stock Exchange of Singapore Mainboard Through our research , we hope to contribute to the teaching and research of finance as well as to help managers in designing a capital structure that would maximize their firm’s value .
Our analysis involved common equity and total assets figures of 70 firms for the 10-year period from 1983-1992 . Common equity ratios (Common equity/ Total assets) computed are then used for testing our 3 hypotheses .
We performed One-way Anova for each of our hypothesis . As this test requires us to make assumptions regarding the normality and homogeneity ofvariances of our samples , we introduced a non-parametric test ( Kruskal-Wallis test ) to relax these assumptions .
Our results indicate that there is some evidence to support the theory that industry class does influence capital structure decisions . On size and market conditions, however, we found no evidence to support that these factors do have an influence on capital structure strategies . In all, this study suggests that for the case of Singapore companies , there is no one optimal capital structure . Firms’ capital decisions tend to be influenced solely by industry classification, and their capital structure does not change even though their firm size and market conditions surrounding them may have changed . |
| first_indexed | 2024-10-01T03:40:02Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/51862 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:40:02Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | ntu-10356/518622023-05-19T03:30:06Z Is there an optimal financial structure? : some evidence from Singapore listed companies. Chng, Jong Ling. Lee, Vincent Hong Yong. Seah, Kim Yeow. Nanyang Business School Mrs Wendy Foo Tin See DRNTU::Business::Accounting In this study , we investigated the influence industry class , market forces and size have on the capital structure of firms listed on the Stock Exchange of Singapore Mainboard Through our research , we hope to contribute to the teaching and research of finance as well as to help managers in designing a capital structure that would maximize their firm’s value . Our analysis involved common equity and total assets figures of 70 firms for the 10-year period from 1983-1992 . Common equity ratios (Common equity/ Total assets) computed are then used for testing our 3 hypotheses . We performed One-way Anova for each of our hypothesis . As this test requires us to make assumptions regarding the normality and homogeneity ofvariances of our samples , we introduced a non-parametric test ( Kruskal-Wallis test ) to relax these assumptions . Our results indicate that there is some evidence to support the theory that industry class does influence capital structure decisions . On size and market conditions, however, we found no evidence to support that these factors do have an influence on capital structure strategies . In all, this study suggests that for the case of Singapore companies , there is no one optimal capital structure . Firms’ capital decisions tend to be influenced solely by industry classification, and their capital structure does not change even though their firm size and market conditions surrounding them may have changed . Bachelor of Accountancy 2013-04-12T04:32:00Z 2013-04-12T04:32:00Z 1996 1996 Final Year Project (FYP) http://hdl.handle.net/10356/51862 en Nanyang Technological University 121 p. application/pdf |
| spellingShingle | DRNTU::Business::Accounting Chng, Jong Ling. Lee, Vincent Hong Yong. Seah, Kim Yeow. Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title | Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title_full | Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title_fullStr | Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title_full_unstemmed | Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title_short | Is there an optimal financial structure? : some evidence from Singapore listed companies. |
| title_sort | is there an optimal financial structure some evidence from singapore listed companies |
| topic | DRNTU::Business::Accounting |
| url | http://hdl.handle.net/10356/51862 |
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