Capital structure and firms financial performance : evidence from Palestine

مقدم أطروحة جامعية

Abu Tawhinah, Muhammad Shawqi Muhammad

مشرف أطروحة جامعية

Halas, Salim Abd Allah

أعضاء اللجنة

al-Daur, Jabr Ibrahim
Abu Muammar, Faris Mahmud

الجامعة

الجامعة الإسلامية

الكلية

كلية التجارة

القسم الأكاديمي

قسم المحاسبة و التمويل

دولة الجامعة

فلسطين (قطاع غزة)

الدرجة العلمية

ماجستير

تاريخ الدرجة العلمية

2015

الملخص الإنجليزي

This thesis examines the impact of capital structure on firm’s financial performance.

The main objective of the study is to determine the overall effect of capital structure on corporate financial performance of Palestinian firms by establishing the relationship that may exist between the capital structure choices of firms in Palestine and their financial performance.

The study use three financial performance measures including return on assets (ROA), return on equity (ROE), and return on investment (ROI) as dependent variables and three capital structure measures including short term debt to total assets (STDTA), long term debt to total assets (LTDTA) and total debt to total assets(TDTA) as independent variables.

In addition, the firm size and industry type was used as control variables.

The population of this study consists of 49 Palestinian corporations listed on Palestine Exchange (PEX).

35 Corporations were selected on the basis of availability of information necessary for conducting the study and the readiness of annual financial reports for the period of 5 years from 2009-2013.

These corporations belong to five sectors in PEX as the follow: Banking and financial services, Insurance, Investments, Industry, and Services.

Descriptive statistics, correlation and multiple regressions were used to test the relations between variables.

The results show that there is a relationship between capital structure and corporate financial performance.

For the market, there is a negative influence for STDTA and TDTA on financial performance measurements except the ROE.

The results according to each sector in the market were as the following: For Banking, there is a positive influence for capital structure on firm's financial performance.

For Insurance, there is a negative influence for STDTA on financial performance measurements except the ROE.

For Investment Firms, there is a negative influence for STDTA on financial performance measurements except the ROA.

For Industrial firms, there is no significant influence for capital structure on firm's financial performance.

For Services firms, the results indicate positive influence for STDTA and TDTA on ROA and negatively on ROE, and ROI.

It can be concluded that Palestinian firms are majorly financed by mixing of equity and short term financing.

The study recommends the firms to achieve the best debt ratio with the minimum cost to maximize the financial performance.

Also, the firms should rely less on short term debt which formed the major part of their leverage and focus more on developing internal strategies that can improve their financial performance.

التخصصات الرئيسية

العلوم المالية و المحاسبية

الموضوعات

عدد الصفحات

76

قائمة المحتويات

Table of contents.

Abstract.

Abstract in Arabic.

Chapter One : General background.

Chapter Two : Capital structure : theories and performance measures.

Chapter Three : Research methodology.

Chapter Four : Data analysis and interpretation.

Chapter Five : Results and recommendations.

References.

نمط استشهاد جمعية علماء النفس الأمريكية (APA)

Abu Tawhinah, Muhammad Shawqi Muhammad. (2015). Capital structure and firms financial performance : evidence from Palestine. (Master's theses Theses and Dissertations Master). Islamic University, Palestine (Gaza Strip)
https://search.emarefa.net/detail/BIM-685760

نمط استشهاد الجمعية الأمريكية للغات الحديثة (MLA)

Abu Tawhinah, Muhammad Shawqi Muhammad. Capital structure and firms financial performance : evidence from Palestine. (Master's theses Theses and Dissertations Master). Islamic University. (2015).
https://search.emarefa.net/detail/BIM-685760

نمط استشهاد الجمعية الطبية الأمريكية (AMA)

Abu Tawhinah, Muhammad Shawqi Muhammad. (2015). Capital structure and firms financial performance : evidence from Palestine. (Master's theses Theses and Dissertations Master). Islamic University, Palestine (Gaza Strip)
https://search.emarefa.net/detail/BIM-685760

لغة النص

الإنجليزية

نوع البيانات

رسائل جامعية

رقم السجل

BIM-685760