The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind
The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies...
| Main Authors: | , , , , , , , |
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| Format: | Article |
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Elsevier B. V.
2020
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| _version_ | 1796865156628611072 |
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| author | Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon ur Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin |
| author_facet | Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon ur Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin |
| author_sort | Sadiq, Misbah |
| collection | ePrints |
| description | The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies of Jordan by using the time series data from 2012 to 2016. The results confirmed the “stewardship theory,” "pecking order theory," and “concentrated ownership theory,” while contractionary monetary instruments diffuse the recessionary phase in a country. The results confirmed a U-shaped relationship between debt and Tobin's Q in mediation with the country's per capita income. In contrast, an inverted U-shaped relationship found between market capitalization and a firm's performance in intervention with domestic credit provided by the financial sector (DCPFS). These results are essential in the light of CG theories to stabilize the firm's internal and external issues, which are further optimized by government financial agencies to energize macroeconomic policies for sustained growth. |
| first_indexed | 2024-03-05T20:52:40Z |
| format | Article |
| id | utm.eprints-91078 |
| institution | Universiti Teknologi Malaysia - ePrints |
| last_indexed | 2024-03-05T20:52:40Z |
| publishDate | 2020 |
| publisher | Elsevier B. V. |
| record_format | dspace |
| spelling | utm.eprints-910782021-05-31T13:29:23Z http://eprints.utm.my/91078/ The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon ur Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin H Social Sciences (General) The role of debt in capital structure and firms' performance has a great novelty in reducing market imperfections that improve firms' value. This study integrated the qualitative and quantitative aspects of capital structure and firms' performance in 56 stock exchange-listed companies of Jordan by using the time series data from 2012 to 2016. The results confirmed the “stewardship theory,” "pecking order theory," and “concentrated ownership theory,” while contractionary monetary instruments diffuse the recessionary phase in a country. The results confirmed a U-shaped relationship between debt and Tobin's Q in mediation with the country's per capita income. In contrast, an inverted U-shaped relationship found between market capitalization and a firm's performance in intervention with domestic credit provided by the financial sector (DCPFS). These results are essential in the light of CG theories to stabilize the firm's internal and external issues, which are further optimized by government financial agencies to energize macroeconomic policies for sustained growth. Elsevier B. V. 2020 Article PeerReviewed Sadiq, Misbah and Yousaf, Sheikh Usman and Anser, Muhammad Khalid and Rashid Khan, Haroon ur and Sriyanto, Sriyanto and Zaman, Khalid and Duong, Van Tu and Mohd. Anis, Siti Nisrin (2020) The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind. Quarterly Review of Economics and Finance . ISSN 1062-9769 http://dx.doi.org/10.1016/j.qref.2020.11.001 |
| spellingShingle | H Social Sciences (General) Sadiq, Misbah Yousaf, Sheikh Usman Anser, Muhammad Khalid Rashid Khan, Haroon ur Sriyanto, Sriyanto Zaman, Khalid Duong, Van Tu Mohd. Anis, Siti Nisrin The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title | The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title_full | The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title_fullStr | The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title_full_unstemmed | The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title_short | The role of debt financing in the relationship between capital structure, firm’s value, and macroeconomic factors: To throw caution to the wind |
| title_sort | role of debt financing in the relationship between capital structure firm s value and macroeconomic factors to throw caution to the wind |
| topic | H Social Sciences (General) |
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