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The capital structure practises of listed firms in South Africa

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dc.contributor.advisor Ngwenya, Maluleka Samson
dc.contributor.author Kasozi, Stephen Jason
dc.date.accessioned 2010-07-19T12:42:47Z
dc.date.available 2010-07-19T12:42:47Z
dc.date.issued 2009-11
dc.identifier.uri http://hdl.handle.net/10500/3439
dc.description.abstract This study examines the divide between finance theory and practice by analysing the significance of the determinants of capital structure choice among 123 listed firms on the JSE, to determine whether these firms follow the trade-off theory or the pecking-order theory. Data obtained from McGregor’s Bureau of Financial Analysis database was analysed using standard multiple regressions, stepwise regressions and ANOVA techniques to test for financing behaviour. The results indicated that the trade-off model has both cross-sectional and time-series explanatory power for explaining the financing behaviour, while tests on the pecking-order model were weak. The results further revealed a significant positive correlation between debt financing and financial distress, and a significant negative correlation between debt financing and the collateral value of assets during the period under study (1995-2005). These findings suggest a divergence between finance theory and practice for JSE listed firms and manifest conflicting ideologies between finance practices of developed and developing economies. en
dc.format.extent 1 online resource (ix, 140 leaves : ill.)
dc.language.iso en en
dc.subject Financial distress en
dc.subject Capital structure en
dc.subject Trade-off theory en
dc.subject Packing-off theory en
dc.subject Corporate finance theory en
dc.subject Target adjustment model en
dc.subject Earning volatility en
dc.subject.ddc 658.154
dc.subject.lcsh Financial management
dc.subject.lcsh Corporations -- Finance
dc.subject.lcsh Business enterprises -- Finance
dc.title The capital structure practises of listed firms in South Africa en
dc.type Dissertation en
dc.description.department Business management
dc.description.degree M. Com. (Business Management )


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