Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah

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Field Value
 
Title Determinants of capital structure: Evidence from Sidama credit and saving microfinance institution
 
Creator Taddese, Alemayehu
 
Subject Capital structure
Credit
Microfinance institution
 
Description Different industry-specific and macro-economic factors influence the capital structure of microfinance institutions (MFI). So, the objective of this study is to identify industry-specific determinants of capital structure with the selected branch of Sidama MFI, Sidama region, Ethiopia. To this end, the researcher employed a quantitative research approach with an explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The secondary data were collected from Sidama MFIs consolidated and audited financial statements from 2009 to 2019 G.C. Then, both descriptive and inferential statistical analysis has been done. The researcher employed a regression analysis model to identify the effect of five explanatory variables on capital structure measured through debt to equity ratio. Thus, the result of regression analysis showed that out of five independent variables incorporated in the model, all five variables such as growth (negative), profitability (positive), firm size (positive), earning volatility (positive), and asset tangibility (positive) and statistically significant respectively. This study recommends that the microfinance institutions at all company levels improve debt capacity in proportion to asset tangibility more than the current status.
 
Publisher Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi
 
Date 2021-08-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://online-journal.unja.ac.id/JES/article/view/12221
10.22437/ppd.v9i3.12221
 
Source Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; Vol. 9 No. 3 (2021): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah; 289 - 300
2355-8520
2338-4603
 
Language eng
 
Relation http://online-journal.unja.ac.id/JES/article/view/12221/11743
 
Rights Copyright (c) 2021 Alemayehu Taddese
https://creativecommons.org/licenses/by/4.0
 

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