Paper Information

Journal:   JOURNAL OF SOCIAL SCIENCES AND HUMANITIES OF SHIRAZ UNIVERSITY   SPRING 2007 , Volume 26 , Number 1 (50); Page(s) 13 To 35.
 
Paper: 

IMPACT OF SIZE AND INDUSTRY ON CAPITAL STRUCTURE: THE EVIDENCE FROM IRAN

 
Author(s):  AHMAD POUR A., SALIMI AMIN
 
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Abstract: 

The purpose of this paper is to investigate empirically the existence of inter-industry differences in the capital structure of Iranian firms and to investigate impact of size (assets/sale) on capital structure. First we attempt to test the differences in capital structure across industry groups using the leverage ratio of debt to assets. The first null hypothesis to be tested is that firms in different industries have the same financial structures. The results of the cross-sectional tests were obtained by performing a nonparametric Kruskal-Wallis test. The nonparametric tests results in the rejection of the null hypothesis.
In second hypothesis we pool together the firms, with no regard to the industry class and investigate whether the size of the firms correlates with capital structure. Then the spearman rank correlation coefficient is calculated. It is interesting to note that the spearman rank correlation coefficient is not significant over all the years. This implies that there is no relationship between size and capital structure.

 
Keyword(s): INDUSTRY, SIZE, FINANCIAL STRUCTURE, CAPITAL, STRUCTURE
 
References: 
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