UUM Electronic Theses and Dissertation
UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

Capital structure and firms performance: Evidence from Kuwait

Menacer, Abdesslam (2014) Capital structure and firms performance: Evidence from Kuwait. Masters thesis, Universiti Utara Malaysia.

[thumbnail of s813034.pdf]
Preview
Text
s813034.pdf

Download (1MB) | Preview
[thumbnail of s813034_abstract.pdf]
Preview
Text
s813034_abstract.pdf

Download (536kB) | Preview

Abstract

The purpose of this study is to examine the impact of capital structure on the performance of 192 firms listed on the stock exchange of Kuwait, covering from year 2009 to 2013. There are very little empirical studies in the existing literature that investigate the influence of capital structure on performance of Kuwaiti firms. Following previous studies, this study hypothesizes that capital structure will positively influence the performance of Kuwaiti firms. In this respect, capital structures are measured by the total debt to equity ratio (TDE) and total debt to assets
ratio (TDA). Meanwhile, the performance variables are measured by the return on assets
(ROA) and return on equity (ROE). This study also includes firm specific variables as control
variables such as capital expenditure to sales, sales growth, and firm size. By using pooled
OLS estimation, the results indicate that there is a positive and significant relationship between TDE and ROE, while TDA is negatively but significantly related with the ROE. Then, the findings show a positive but insignificant impact between TDE and ROA, whereas TDA is
negatively and insignificantly related with ROA. The findings also reveal that firm specific
variables such as capital expenditure to sales, firm size, and sales growth demonstrate a
significant and positive relationship with the ROA and ROE.

Item Type: Thesis (Masters)
Supervisor : Abdul Adzis, Azira
Item ID: 4568
Uncontrolled Keywords: Firm performance, capital structure, return on equity, return on asset, Kuwait Stock Exchange.
Subjects: H Social Sciences > HG Finance
Divisions: Othman Yeop Abdullah Graduate School of Business
Date Deposited: 25 May 2015 07:55
Last Modified: 02 Jun 2022 03:19
Department: Othman Yeop Abdullah Graduate School of Business
Name: Abdul Adzis, Azira
URI: https://etd.uum.edu.my/id/eprint/4568

Actions (login required)

View Item
View Item