THE DETERMINANTS OF THE FINANCING DECISIONS OF LISTED AND NON-LISTED FIRMS IN GHANA
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 7
Abstract
The study examines the financing decisions of 19 listed companies in comparison with 16 non-listed companies in Ghana. The study tests some hypotheses related to capital structure determinants and debt policy decisions. The study finds support for the pecking order hypothesis across all firms. The free cash flow hypothesis holds for long-term debt decisions across firms but not the capital structure decisions. All forms of debt policy decisions are consistent with the matching principle except non-listed firms’ long term debt. The study does not find any significant differences between listed and non-listed firms in the application of debt. Policy recommendations are provided.
Authors and Affiliations
Alhassan Andani| Department of Mathematics, University for Development Studies (UDS), P O Box 24, Navrongo, Ghana, Seidu Al-hassan| Centre for Continuing Education and Interdisciplinary Research, University for Development Studies (UDS) P O Box TL 1350, Tamale, Ghana.
Keywords
Related Articles
- EP ID EP1826
- DOI -
- Views 594
- Downloads 62
INSTITUTIONS AND ECONOMIC GROWTH
The objective of this paper is to study the effect of institutional factors on economic growth of a set of 37 developed and developing countries for six successive periods of five years, from 1975 until 2000, using a sta...
ANALYSIS OF MACROECONOMIC FACTORS FOR THE ESTABLISHMENT OF INDUSTRIAL PARKS AND THEIR EFFECTS ON REGIONAL DEVELOPMENT: EMPIRICAL STUDY FROM SLOVAKIA
The aim of this study is to identify and analyze the key macroeconomic factors affecting the establishment and entrepreneurship in industrial parks with positive effects on sustainable regional development in Slovakia as...
EMPLOYEE BRANDING MODEL BASED ON INDIVIDUAL AND ORGANIZATIONAL VALUES IN THE IRANIAN BANKING INDUSTRY
In the competitive world of today, every company knows that their main asset is human resources, since employees have a crucial role in building strong a brand. But researches show that more managers do not pay attention...
OPTIMAL TAX POLICY – FINANCIAL CRISIS OVERCOMING FACTOR
Among economic reforms implemented for overcoming of world financial and economic recessions the special accent is brought to macroeconomic stabilization; strengthening of financial sphere is recognized one of imperative...
ANALYSIS OF FISCAL DEFICIT SUSTAINABILITY IN NIGERIAN ECONOMY: AN ERROR CORRECTION APPROACH
The study investigates the sustainability of fiscal policy in Nigeria over the period of 1980-2010 to determine whether or not the government has violated intertemporal government budget constraint. Using error correctio...