Factors Effecting Capital Structure Analytical Study: Industry Sector, ASE

Proceedings of The 4th International Conference on Advanced Research in Management, Economics and Accounting

Year: 2023

DOI: https://www.doi.org/10.33422/4th.armeaconf.2023.05.110

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Factors Effecting Capital Structure Analytical Study: Industry Sector, ASE

Mohammed Abdul Mohsen Al Afeef

ABSTRACT: 

This study aims to examine the impact of some factors on the capital structure in the industrial sector, Amman Stock Exchange during the period (2012-2021). The researcher chose four factors: (tangible assets, risk, profitability and tax). The study sample reached 62 industrial companies. Financial analysis was used to calculate the variables of the study; the hypotheses were tested according to the appropriate statistical methods using the SPSS software. The most important results of the study: a statistically significant effect of the independent variables combined on the capital structure, as well as a statistically significant impact of the independent variables (tangible assets, risk, and profitability) individually on the capital structure, and no statistically significant effect of the tax variable on Capital structure. As the model was able to explain 20% of the changes in capital structure, and 80% is attributable to other factors.

keywords: capital structure, profitability, tangible assets, risk, tax, finance, industrial companies, ASE