research on capital structure and firm performance

Information

• Author Services

Initiatives

You are accessing a machine-readable page. In order to be human-readable, please install an RSS reader.

All articles published by MDPI are made immediately available worldwide under an open access license. No special permission is required to reuse all or part of the article published by MDPI, including figures and tables. For articles published under an open access Creative Common CC BY license, any part of the article may be reused without permission provided that the original article is clearly cited. For more information, please refer to https://www.mdpi.com/openaccess .

Feature papers represent the most advanced research with significant potential for high impact in the field. A Feature Paper should be a substantial original Article that involves several techniques or approaches, provides an outlook for future research directions and describes possible research applications.

Feature papers are submitted upon individual invitation or recommendation by the scientific editors and must receive positive feedback from the reviewers.

Editor’s Choice articles are based on recommendations by the scientific editors of MDPI journals from around the world. Editors select a small number of articles recently published in the journal that they believe will be particularly interesting to readers, or important in the respective research area. The aim is to provide a snapshot of some of the most exciting work published in the various research areas of the journal.

Original Submission Date Received: .

• Active Journals
• Find a Journal
• Proceedings Series
• For Authors
• For Reviewers
• For Editors
• For Librarians
• For Publishers
• For Societies
• For Conference Organizers
• Open Access Policy
• Institutional Open Access Program
• Special Issues Guidelines
• Editorial Process
• Research and Publication Ethics
• Article Processing Charges
• Testimonials
• Preprints.org
• SciProfiles
• Encyclopedia

Article Menu

• Subscribe SciFeed
• Recommended Articles
• Google Scholar
• on Google Scholar
• Table of Contents

Find support for a specific problem in the support section of our website.

Please let us know what you think of our products and services.

Visit our dedicated information section to learn more about MDPI.

JSmol Viewer

The relationship between capital structure and firm performance: the moderating role of agency cost.

1. Introduction

2. literature review, 2.1. theoretical approach, 2.2. hypothesis development, 2.2.1. the relationship between capital structure and financial performance, 2.2.2. the relationship between agency cost and firm performance, 2.2.3. the relationship between agency cost, capital structure, and firm performance, 3. materials and methods, 3.1. theoretical approach, 3.2. variables selection, 3.2.1. independent and moderator variables, 3.2.2. dependent variables, 3.2.3. control variables, 3.3. method and empirical model.

• Model 1 without moderation. R O A i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 C i t + E i t
• Model 1 with moderation. R O A i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 D T A i t × A U R i t + β 5 D T M C i t × A U R i t + β 6 C i t + E i t
• Model 2 without moderation. T Q i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 C i t + E i t
• Model 2 with moderation. T Q i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 D T A i t × A U R i t + β 5 D T M C i t × A U R i t + β 6 C i t + E i t
• Model 3 without moderation. E P S i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 C i t + E i t
• Model 3 with moderation. E P S i t = β 0 + β 1 D T A i t + β 2 D T M C i t + β 3 A U R i t + β 4 D T A i t × A U R i t + β 5 D T M C i t × A U R i t + β 6 C i t + E i t

4. Results and Discussion

4.1. descriptive results, 4.2. multicollinearity test, 4.3. heteroscedasticity test, 4.4. panel unit-root tests, 4.5. model specification, 4.6. regression results, 4.6.1. effect of capital structure on firm performance, 4.6.2. effect of agency cost on firm performance, 4.6.3. moderating effect of agency cost, 5. conclusions, author contributions, data availability statement, acknowledgments, conflicts of interest.

• Abdullah, Hariem. 2020. Capital Structure, Corporate Governance and Firm Performance Under IFRS Implementation. Ph.D. thesis, Near East University, Mersin, Turkey. (In Germany) [ Google Scholar ] [ CrossRef ]
• Abdullah, Hariem. 2021. Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms. Eurasian Journal of Management & Social Sciences 2: 15–30. [ Google Scholar ] [ CrossRef ]
• Abdullah, Hariem, and Turgut Tursoy. 2021. Capital structure and firm performance: Evidence of Germany under IFRS adoption. Review of Managerial Science 15: 379–98. [ Google Scholar ] [ CrossRef ]
• Abdullah, Hariem, and Turgut Tursoy. 2023. The Effect of Corporate Governance on Financial Performance: Evidence from a Shareholder-Oriented System. Iranian Journal of Management Studies 16: 79–95. [ Google Scholar ] [ CrossRef ]
• Abdullah, Hariem A., Heshoo G. Awrahman, and Hardi A. Omer. 2021. Effect of Working Capital Management on The Financial Performance of Banks (An Empirical Analysis for Banks Listed on The Iraq Stock Exchange). Qalaai Zanist Journal 6: 429–56. [ Google Scholar ] [ CrossRef ]
• Abor, Joshua. 2007. Debt policy and performance of SMEs: Evidence from Ghanaian and South African firms. Journal of Risk Finance 8: 364–79. [ Google Scholar ] [ CrossRef ]
• Adair, Philippe, Mohamed Adaskou, and David McMillan. 2015. Trade-off theory vs. Pecking order theory and the determinants of corporate leverage: Evidence from a panel data analysis upon french SMEs (2002–2010). Cogent Economics and Finance 3: 1–12. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Ahmad, Muhammad, Rabia Bashir, and Hamid Waqas. 2022. Working capital management and firm performance: Are their effects same in covid 19 compared to financial crisis 2008? Cogent Economics and Finance 10: 1–18. [ Google Scholar ] [ CrossRef ]
• Albart, Nicko, Bonar Marulitua Sinaga, Perdana Wahyu Santosa, and Trias Andati. 2020. The Effect of Corporate Characteristics on Capital Structure in Indonesia. Journal of Economics, Business, & Accountancy Ventura 23: 46–56. [ Google Scholar ] [ CrossRef ]
• Alexander, Onyango Allen. 2016. Effect of Capital Strucuture on Financial Performance: The Case of Banks Listed at The Nairobi Securities Exchange. Bachelor’s thesis, Strathmore University, Nairobi, Kenya. Available online: http://hdl.handle.net/11071/5061 (accessed on 5 January 2023).
• Al-Gamrh, Bakr, Ku Nor Izah Ku Ismail, Tanveer Ahsan, and Abdulsalam Alquhaif. 2020. Investment opportunities, corporate governance quality, and firm performance in the UAE. Journal of Accounting in Emerging Economies 10: 261–76. [ Google Scholar ] [ CrossRef ]
• Ali, Muhammad Nawzad, and Amanj Mohamed Ahmed. 2021. The Effect of Capital Structure on Financial Performance “Applied study in Turkish Stock Exchange”. Eurasian Journal of Management & Social Sciences 2: 43–57. [ Google Scholar ] [ CrossRef ]
• Al-Imam, Salahadin, and Mesa Hassan. 2019. The effect of capital structure on financial performance. Journal of AL_Turath University College 27: 189–212. Available online: https://www.iasj.net/iasj/article/201851 (accessed on 2 February 2023).
• Al-Kayed, Lama Tarek, Sharifah Raihan Syed Mohd Zain, and Jarita Duasa. 2014. The relationship between capital structure and performance of Islamic banks. Journal of Islamic Accounting and Business Research 5: 158–81. [ Google Scholar ] [ CrossRef ]
• Almustafa, Hamza, Quang Khai Nguyen, Jia Liu, and Van Cuong Dang. 2023. The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter? PLoS ONE 18: e0281148. [ Google Scholar ] [ CrossRef ]
• Al-Taani, Khalaf. 2013. The Relationship between Capital Structure and Firm Performance: Evidence from Jordan. Journal of Finance and Accounting 1: 41. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Ang, James S., Rebel A. Cole, and James Wuh Lin. 2000. Agency Costs and Ownership Structure. The Journal of Finance 55: 81–106. [ Google Scholar ] [ CrossRef ]
• Ayalew, Zemenu Amare, and David McMillan. 2021. Capital structure and profitability: Panel data evidence of private banks in Ethiopia. Cogent Economics and Finance 9: 1. [ Google Scholar ] [ CrossRef ]
• Bae, John, Sang-Joon Kim, and Hannah Oh. 2017. Taming polysemous signals: The role of marketing intensity on the relationship between financial leverage and firm performance. Review of Financial Economics 33, 29–40 . [ Google Scholar ] [ CrossRef ]
• Baykara, Sule, and Betul Baykara. 2021. The impact of agency costs on firm performance: An analysis on BIST SME firms. Pressacademia 14: 28–32. [ Google Scholar ] [ CrossRef ]
• Berger, Allen N., and Emilia Bonaccorsi di Patti. 2006. Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry. Journal of Banking and Finance 30: 1065–102. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Berle, Adolf A., Jr., and Gardiner Coit Means. 1932. The Modern Corporation and Private Property . New York: The Mcmillan Company. [ Google Scholar ]
• Booth, Laurence, Varouj A. Aivazian, Asli Demirguc-Kunt, and Vojislav Maksimovic. 2001. Capital structures in developing countries. Journal of Finance 56: 87–130. [ Google Scholar ] [ CrossRef ]
• Brooks, Chris. 2014. Introductory Econometrics for Finance , 3rd ed. Cambridge: Cambridge University Press. [ Google Scholar ]
• Chi, Jianxin (Daniel). 2005. Understanding the endogeneity between firm value and shareholder rights. Financial Management 34: 65–76. [ Google Scholar ] [ CrossRef ]
• Dang, Van Cuong, and Quang Khai Nguyen. 2021. Internal corporate gov-ernance and stock price crash risk: Evidence from Vietnam. Journal of Sustainable Finance & Investment , 1–18. [ Google Scholar ] [ CrossRef ]
• Dawar, Varun. 2014. Agency Theory, Capital Structure and Firm Performance. Managerial Finance 40: 1190–206. [ Google Scholar ] [ CrossRef ]
• Demsetz, H., and K. Lehn. 1985. The Structure of Corporate Ownership: Causes and Consequences. Journal of Political Econom 93: 1155–77. [ Google Scholar ] [ CrossRef ]
• Diantimala, Yossi, Sofyan Syahnur, Ratna Mulyany, and Faisal Faisal. 2021. Firm size sensitivity on the correlation between financing choice and firm value. Cogent Business and Management 8: 1–19. [ Google Scholar ] [ CrossRef ]
• Dickey, David A., and Wayne A. Fuller. 1979. Distribution of the Estimators for Autoregressive Time Series with a Unit Root. Journal of the American Statistical Association 74: 427–31. [ Google Scholar ] [ CrossRef ]
• Eldomiaty, Tarek I. 2008. Determinants of corporate capital structure: Evidence from an emerging economy. International Journal of Commerce and Management 17: 25–43. [ Google Scholar ] [ CrossRef ]
• El-Sayed Ebaid, Ibrahim. 2009. The impact of capital-structure choice on firm performance: Empirical evidence from Egypt. Journal of Risk Finance 10: 477–87. [ Google Scholar ] [ CrossRef ]
• Grossman, Sanford J., and Oliver D. Hart. 1982. Corporate Financial Structure and Managerial Incentives. In The Economics of Information and Uncertainty . Edited by John J. McCall. Chicago: University of Chicago Press, pp. 107–40. Available online: http://www.nber.org/chapters/c4434 (accessed on 25 February 2023).
• Hair, Joseph F., Jr., William C. Black, Barry J. Babin, and Rolph E. Anderson. 2010. Multivariate Data Analysis , 7th ed. London: Pearson Education. [ Google Scholar ]
• Harris, Richard D. F., and Elias Tzavalis. 1999. Inference for unit roots in dynamic panels where the time dimension is fixed. Journal of Econometrics 91: 201–26. [ Google Scholar ] [ CrossRef ]
• Hasan, Bokhtiar, A. F. M. Mainul Ahsan, Afzalur Rahaman, and Nurul Alam. 2014. Influence of Capital Structure on Firm Performance: Evidence from Bangladesh. International Journal of Business and Management 9: 184–94. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Hoang, Le Duc, Tran Minh Tuan, Pham Van Tue Nha, and Ta Thu Phuong. 2019. Impact of agency costs on firm performance: Evidence from Vietnam. Organizations and Markets in Emerging Economies 10: 294–309. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Ibhagui, Oyakhilome W., and Felicia O. Olokoyo. 2018. Leverage and firm performance: New evidence on the role of firm size. North American Journal of Economics and Finance 45: 57–82. [ Google Scholar ] [ CrossRef ]
• Jabbary, Hossein, Zohreh Hajiha, and Roghaieh Hassanpour Labeshka. 2013. Investigation of the effect of agency costs on firm performance of listed firms in Tehran Stock Exchange. European Online Journal of Natural and Social Science 2: 771–76. [ Google Scholar ]
• Jensen, Michael C. 1986. Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economic Review 76: 323–29. Available online: http://www.jstor.org/stable/1818789 (accessed on 1 March 2023).
• Jensen, Michael C., and William H. Meckling. 1976. Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics 3: 305–60. [ Google Scholar ] [ CrossRef ]
• Jouida, Sameh. 2018. Diversification, capital structure and profitability: A panel VAR approach. Research in International Business and Finance 45: 243–56. [ Google Scholar ] [ CrossRef ]
• Kalash, İsmail. 2019. Firm leverage, agency costs and firm performance: An empirical research on service firms in Turkey. Journal of the Human and Social Sciences Researches 8: 624–36. [ Google Scholar ] [ CrossRef ]
• Kontuš, Eleonora. 2021. Agency costs, capital structure and corporate performance. Ekonomski Vjesnik 34: 73–85. [ Google Scholar ] [ CrossRef ]
• Koop, Gary. 2008. Introduction to Econometrics . Hoboken: John Wiley & Sons. [ Google Scholar ]
• Kraus, Alan, and Robert Litzenberger. 1973. A State-Preference Model of Optimal financial leverage. Journal of Finance 28: 911–22. [ Google Scholar ] [ CrossRef ]
• Le, Thi Phuong Vy, and Thi Bich Nguyet Phan. 2017. Capital structure and firm performance: Empirical evidence from a small transition country. Research in International Business and Finance 42: 710–26. [ Google Scholar ] [ CrossRef ]
• Levin, Andrew, Chien-Fu Lin, and Chia-Shang James Chu. 2002. Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics 108: 1–24. [ Google Scholar ] [ CrossRef ]
• Li, Hongxia, and Liming Cui. 2003. Empirical Study of Capital Structure on Agency Costs in Chinese Listed Firms. Nature and Science 1: 12–20. [ Google Scholar ] [ CrossRef ]
• Li, Kang, Jyrki Niskanen, and Mervi Niskanen. 2019. Capital structure and firm performance in European SMEs: Does credit risk make a difference? Managerial Finance 45: 582–601. [ Google Scholar ] [ CrossRef ]
• Liang, Zhiqiang, Jianming Wei, Junyu Zhao, Haitao Liu, Baoqing Li, Jie Shen, and Chunlei Zheng. 2008. The statistical meaning of kurtosis and its new application to identification of persons based on seismic signals. Sensors 8: 5106–19. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Liu, Tiansen, Yufeng Zhang, and Dapeng Liang. 2019. Can ownership structure improve environmental performance in Chinese manufacturing firms? The moderating effect of financial performance. Journal of Cleaner Production 225: 58–71. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Mansyur, Andi, Abd. Rahman Mus, Zainuddin Rahman, and Suriyanti Suriyanti. 2020. Financial Performance as Mediator on the Impact of Capital Structure, Wealth Structure, Financial Structure on Stock Price: The Case of The Indonesian Banking Sector. European Journal of Business and Management Research 5: 1–10. [ Google Scholar ] [ CrossRef ]
• Mardones, Juan Gallegos, and Gonzalo Ruiz Cuneo. 2020. Capital structure and performance in Latin American companies. Economic Research-Ekonomska Istrazivanja 33: 2171–88. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Mehmood, Mudassar. 2021. Agency Costs and Performance of UK Universities. Public Organization Review 21: 187–204. [ Google Scholar ] [ CrossRef ]
• Miller, Merton H. 1977. Debt and Taxes. The Journal of Finance 32: 261–75. [ Google Scholar ] [ CrossRef ]
• Modigliani, Franco, and Merton H. Miller. 1958. The cost of capital, corporation finance and the theory of investment. The American Economic Review 48: 261–97. Available online: https://www.jstor.org/stable/1809766 (accessed on 2 February 2023).
• Modigliani, Franco, and Merton H. Miller. 1963. Corporate Income Taxes and the Cost of Capital: A Correction. The American Economic Review 53: 433–43. Available online: https://www.jstor.org/stable/1809167 (accessed on 4 March 2023).
• Myers, Stewart C. 1977. Determinants of corporate borrowing. Journal of Financial Economics 5: 147–75. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Myers, Stewart C. 1984. The Capital Structure Puzzle. The Journal of Finance 39: 575–92. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Myers, Stewart C., and Nicholas S. Majluf. 1984. Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 13: 187–221. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Nachane, Dilip M. 2006. Econometrics: Theoretical Foundations and Empirical Perspectives. Journal of Quantitative Economics 4: 151–54. [ Google Scholar ] [ CrossRef ]
• Newbold, Paul, Betty Thorne, and William Lee Carlson. 2013. Statistics for Business and Economics , 8th ed. London: Pearson Education. [ Google Scholar ]
• Ngatno, Apriatni, P. Endang, and Arief Youlianto. 2021. Moderating effects of corporate governance mechanism on the relation between capital structure and firm performance. Cogent Business and Management 8: 1. [ Google Scholar ] [ CrossRef ]
• Nguyen, An, and Phuong Hoang. 2022. The impact of corporate governance quality on capital structure choices: Does national governance quality matter? Cogent Economics and Finance 10: 1–26. [ Google Scholar ] [ CrossRef ]
• Nidumolu, Radhika. 2018. Exploring the Effects of Agency Theory on Ownership Structures and Firm Performance. In Law and Economics: Breaking New Grounds . Working Paper. Lucknow: Eastern Book Company. Available online: https://ssrn.com/abstract=3809607 (accessed on 10 March 2023).
• Pandey, Krishna Dayal, and Tarak Nath Sahu. 2019. Debt Financing, Agency Cost and Firm Performance: Evidence from India. Vision 23: 267–74. [ Google Scholar ] [ CrossRef ]
• Pham, Hanh Song Thi, and Hien Thi Tran. 2020. CSR disclosure and firm performance: The mediating role of corporate reputation and moderating role of CEO integrity. Journal of Business Research 120: 127–36. [ Google Scholar ] [ CrossRef ]
• Phuong, Thao Tran Thi, and Anh Thuy Nguyen. 2019. The Impact of Capital Structure on Firm Performance of Vietnamese Non-financial Listed Companies Based on Agency Cost Theory. VNU Journal of Science: Economics and Business 35: 24–33. [ Google Scholar ] [ CrossRef ]
• Porter, Dawn C., and Damodar N. Gujarati. 2009. Basic Econometrics , 5th ed. New York: McGraw-Hill Irwin. [ Google Scholar ]
• Sadeghian, Nima Sepehr, Mohammad Mehdi Latifi, Saeed Soroush, and Zeinab Talebipour Aghabagher. 2012. Debt Policy and Corporate Performance: Empirical Evidence from Tehran Stock Exchange Companies. International Journal of Economics and Finance 4: 217–24. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Sdiq, Shirwan Rafiq, and Hariem A. Abdullah. 2022. Examining the effect of agency cost on capital structure-financial performance nexus: Empirical evidence for emerging market. Cogent Economics and Finance 10: 1–16. [ Google Scholar ] [ CrossRef ]
• Seth, Himanshu, Saurabh Chadha, Satyendra Kumar Sharma, and Namita Ruparel. 2020. Exploring predictors of working capital management efficiency and their influence on firm performance: An integrated DEA-SEM approach. Benchmarking 28: 1120–45. [ Google Scholar ] [ CrossRef ]
• Sheikh, Nadeem Ahmed, and Zongjun Wang. 2012. Effects of corporate governance on capital structure: Empirical evidence from Pakistan. Corporate Governance (Bingley) 12: 629–41. [ Google Scholar ] [ CrossRef ]
• Sheikh, Nadeem Ahmed, and Zongjun Wang. 2013. The impact of capital structure on performance: An empirical study of non-financial listed firms in Pakistan. International Journal of Commerce and Management 23: 354–68. [ Google Scholar ] [ CrossRef ]
• Shrestha, Ashish. 2020. Analysis of Capital Structure in Power Companies in Asian Economies: Analysis of Capital Structure in Power Companies in Asian Economies. MBA thesis, Kathmandu University, Dhulikhel, Nepal. [ Google Scholar ] [ CrossRef ]
• Siddik, Md Nur Alam, Sajal Kabiraj, and Shanmugan Joghee. 2017. Impacts of capital structure on performance of banks in a developing economy: Evidence from Bangladesh. International Journal of Financial Studies 5: 13. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Thomsen, Steen, and Torben Pedersen. 2000. Ownership structure and economic performance in the largest European companies. Strategic Management Journal 21: 689–705. [ Google Scholar ] [ CrossRef ]
• Tretiakova, V. V., M. S. Shalneva, and A. S. Lvov. 2021. The Relationship between Capital Structure and Financial Performance of the Company. SHS Web of Conferences 91: 01002. [ Google Scholar ] [ CrossRef ]
• Wang, George. Yungchih. 2010. The Impacts of Free Cash Flows and Agency Costs on Firm Performance. Journal of Service Science and Management 3: 408–18. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Williams, Joseph. 1987. Perquisites, Risk, and Capital Structure. The Journal of Finance 42: 29–48. [ Google Scholar ] [ CrossRef ]
• Wooldridge, Jeffrey. M. 1997. Multiplicative Panel Data Models Without the Strict Exogeneity Assumption. Econometric Theory 13: 667–78. [ Google Scholar ] [ CrossRef ] [ Green Version ]
• Wooldridge, Jeffrey. M. 2002. Econometrics Analysis of Cross Section and Panel Data . Cambridge: MIT Press. [ Google Scholar ]
• Wooldridge, Jeffrey. M. 2015. Introductory Econometrics: A Modern Approach , 6th ed. Boston: Cengage Learning. [ Google Scholar ]
• Xiao, Sheng, and Shan Zhao. 2014. How do agency problems affect firm value? - Evidence from China. European Journal of Finance 20: 803–28. [ Google Scholar ] [ CrossRef ]
• Yoshikawa, Toru, and Phillip H. Phan. 2003. The performance implications of ownership-driven governance reform. European Management Journal 21: 698–706. [ Google Scholar ] [ CrossRef ]
• Zeitun, Rami, and Gary Gang Tian. 2007. Capital Structure and Corporate Performance: Evidence from Jordan. The Australasian Accounting Business & Finance Journal 1: 40–61. [ Google Scholar ]

Share and Cite

Ahmed, A.M.; Nugraha, D.P.; Hágen, I. The Relationship between Capital Structure and Firm Performance: The Moderating Role of Agency Cost. Risks 2023 , 11 , 102. https://doi.org/10.3390/risks11060102

Ahmed AM, Nugraha DP, Hágen I. The Relationship between Capital Structure and Firm Performance: The Moderating Role of Agency Cost. Risks . 2023; 11(6):102. https://doi.org/10.3390/risks11060102

Ahmed, Amanj Mohamed, Deni Pandu Nugraha, and István Hágen. 2023. "The Relationship between Capital Structure and Firm Performance: The Moderating Role of Agency Cost" Risks 11, no. 6: 102. https://doi.org/10.3390/risks11060102

Article Metrics

Article access statistics, further information, mdpi initiatives, follow mdpi.

Subscribe to receive issue release notifications and newsletters from MDPI journals

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

A meta-analysis: capital structure and firm performance

2020, Journal of Economics and Development

PurposeThe paper aims at providing insights on the relationship between capital structure and performance of the firm by employing meta-analytical approach to obtain a synthesized result out of controversial studies as well as the sources for such inconsistency.Design/methodology/approachUsing secondary data, the analysis is divided into two main parts with concerns to the overall strength of the relationship, the effect size and the potential paper-specific characteristics influencing the magnitude of impacts between leverage and firm performance (moderators of the relationship). Overall, a total number of 32 journals, reviews and school presses were selected besides online libraries and publishing platforms. There were 50 papers with 340 studies chosen from 2004 to 2019, of which data range from 1998 to 2017.FindingsUsing Hedges et al. (1985,1988), descriptive and quantitative analysis have been conducted to confirm that corporate performance is negatively related to capital decis...

Related Papers

Rajesh Desai

One of the most critical decisions in corporate finance is to decide about the source of fund to be employed. The mix of debt – equity used to generate funds is termed as Capital Structure (CS). Research on Capital Structure and its impact on financial performance has gained momentum from the pioneering article of Modigliani and Miller (1958). Since then it has been one of the most debated and controversial aspects of corporate finance. Researchers have contributed in form of theories as well as empirical findings to study the relation between capital structure and financial performance. Current paper reviews the existing studies in the area of CS and financial performance and also propose a conceptual model that describes the interrelationship between CS and financial performance based on detailed discussion of widespread literature. This model reckons important variables of financial performance affected by CS which help research scholars in further investigation. Researchers can ...

akolo evans

Abstract The unresolved puzzle as regards the relationship between capital structure and firms’ performance actually engendered this study to specifically ascertain how certain components of capital structure influence performance of quoted companies conceptually. In the methodology section,the study employs the desk top review approach to carefully assess existing literatures. Findings made reveal that capital structure has significant impact on the performance of firms. The effects are both positive and negative. It spells out that the result is still very inconclusive. Premised on this, it is suggested that firms should on the basis of financing needs adopt an appropriate mix of debt and equity that should enhance its performance and shareholders wealth. Keywords: long term debt, short term debt, equity, optimal financing mix, firm performance.

Farzad Emadi

The purpose of this paper is to empirically investigate the impact of capital structure on firm performance. Multiple regression analysis is used in the study in estimating the relationship between the leverage level and firm's performance. Using four of accounting-based measures of financial performance (i.e. return on equity (ROE), return on assets (ROA), market value of equity to the book value of equity (MBVR), Tobin's Q ), and based on a sample of 85 firms listed in Tehran Stock Exchange from 2006 to 2011. The results indicate that firm performance, which is measured by (ROE,MBVR & Tobin's Q) is significantly and positively associated with capital structure, while report a negative relation between capital structure and (ROA, EPS). Altogether, our study provides evidence that indicates firm performance is positively or even negatively related to capital structure.

Dr. Raveesh Krishnankutty

Journal of Economics and Sustainable Development

Shodhasamhita : Journal of Fundamental & Comparative Research

Dr Nirmala J

The study examines the existing empirical research works pertaining to financial leverage and its impact on firm's profitability. The review considers the determinants of financial leverage as a part of capital structure decisions of firms. The theories of capital structure are considered as crucial in corporate financing decisions and in many research studies the capital structure theories explained the importance of debt financing. The review upholds the importance of financial leverage on firm profitability and researcher has made an attempt to trace out the determinants of leverage. The review is based on the research work done so far on leverages and its impact on firm profitability were majorly considered and those works related to leverage , firm profitability and determinants of leverage are the main key words used to do review , with the help of well defined inclusion and exclusion criteria. Research Methodology: The present study is based on empirical reviews and secondary data has been collected from various sources like peer-reviewed journals, Scopus indexed journals and books were considered and also used working papers on leverages etc. it is a descriptive and conceptual research paper on financial leverage, Capital structure and its impact on firm profitability. Results: The findings of the study revealed that factors such as growth rate, liquidity, tangibility have significant impact on leverage and other factors like firm size, profitability also have positive association with leverage in few studies.

International Journal of Economics and Finance

Nasir Uddin

Investment Management and Financial Innovations

Marwan Mansour

The purpose of this paper is to empirically investigate the impact of capital structure decisions on firm performance in Jordan (2010–2018), as well as the extent to which firm size matters in the capital structure-performance relationship. The dependent variable was market share. The main independent variables were the book value of total debt ratios, and firm-specific factors such as firm size, firm age, firm growth, and market-to-book value of equity served as control variables. This study used a quantitative research method using panel data analysis of 830 firm-year observations. Random effects model was employed to analyze the capital structure-performance nexus. To infer correctly, the main analysis was re-examined using the generalized method of moment estimator to overcome possible endogeneity concerns. After controlling for endogeneity and firm heterogeneity, this study finds that the book value of capital structure has a significantly positive relation to a firm’s market sh...

sania wijaya

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

International Journal of Academic Research in Economics and Management Sciences

stephen wetsi

Cogent Economics & Finance

Kate Nguyen

Cunning Gangeni

International Journal of Economics and Financial Issues

zakaria zukarnain

Pressacademia

Bashar Abu Khalaf , Hadeel Yaseen

International Journal of Applied Economics, Finance and Accounting

Ylber Prekazi

Journal of Financial Economics

International Journal of Financial Research

Zubair Hassan

SSRN Electronic Journal

Toshinori Fukui

Waqar Younas

ibrahim yusuf

Münchener Wirtschaftswissenschaftliche Beiträge (VWL), 2014-38.

Fabian Kühnhausen , Harald Stieber

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Explore our journals

Browse journals by subject.

• Computing and Mathematics
• Economics and Finance
• Education, Knowledge and Learning
• Energy and Environment
• Healthcare and Biosciences
• Management and Business
• Public Policy and Administration
• Risk, Safety and Emergency Management
• Science, Engineering and Technology
• Society and Leisure
• All Subjects

Research picks

Research picks.

Business environments that foster innovative work behaviour can become more competitive. If employees can introduce new ideas, processes, and solutions, then the company can thrive. An intriguing, yet little explored, factor that can significantly influence this is discussed in the International Journal of Work Innovation – workplace humour.

A. Rajeswari and Pulidindi Venugopal of the Vellore Institute of Technology in Vellore, Tamil Nadu, India, discuss how workplace humour, often seen as merely a source of entertainment, can have a greater significance in terms of employee attitudes, motivation, and overall work dynamics. The team has looked at the relationship between positive humour and innovative work behaviour, having surveyed 236 information technology (IT) employees. They found a positive association using Partial Least Squares Structural Equation Modelling to analyse the results of their survey. The work suggests that a workplace culture encouraging humour might improve innovative behaviour among employees and ultimately improve the company's bottom line.

Humour as a way to tighten social bonds among employees, reduce stress, and even improve overall well-being has been noted in earlier studies. The benefits lead to greater job satisfaction, improved communication among colleagues, and better performance. There are additional benefits in terms of improved group cohesion, higher employee engagement, and reduced numbers of employees suffering burnout.

It is important that any company hoping to harness the power of humour should ensure it promotes positive, constructive humour that enhances well-being and creativity. There are various strategies that a company might use such as encouraging light-hearted interactions, celebrating successes with humour, and creating opportunities for employees to share amusing experiences.

Leadership thus plays an important role in setting the tone for humour in the workplace. Managers who are role models for positive humour can create an environment where employees feel safe to express themselves creatively and engage more deeply with their work. This top-down approach can ensure that humour is part of the organizational ethos and so cultivate an environment where a cohesive and happy workforce can grow and innovate to the benefit of both employee and employer.

Rajeswari, A. and Venugopal, P. (2024) 'Examining the role of workplace humour in stimulating innovative work behaviour – an empirical investigation using structural equation modelling', Int. J. Work Innovation, Vol. 5, No. 3, pp.226–243. DOI: 10.1504/IJWI.2024.139443

Education and financial support are critical to whether or not women become entrepreneurs in Bangladesh, according to research in the International Journal of Business and Emerging Markets . The same study, which surveyed more than 350 female entrepreneurs, also suggests that government, social support, and national culture do not substantially influence a woman's decision to pursue entrepreneurship.

Md. Shahadat Hossain of the Universiti Putra Malaysia, Weng Marc Lim of Sunway University both in Selangor, Malaysia, and Md Asadul Islam of BRAC University in Dhaka, Bangladesh, discuss how the global rise of female entrepreneurship is an important trend. It has been driven by technological advancements that have democratized access to business opportunities. Digital platforms have made it easier and safer for women to engage in entrepreneurial activities, facilitating online sales and other business operations. This is particularly apparent in developing nations. However, despite the progress, women entrepreneurs continue to face significant challenges associated with caregiving responsibilities, a lack of family support, and barriers across society.

The team suggests that understanding the motivations of female entrepreneurs is important to improving access to business and support. It will help in increasing the number of women entering the entrepreneurial space, provide support for those already engaged in entrepreneurial activities, and boost the potential of female entrepreneurship.

Education equips women with the knowledge and skills for starting and running their own businesses. An improved understanding of the impact of education can help fill knowledge gaps and guide both educators and policymakers. Financial support, which includes access to funding for business start-up and growth, is also a critical factor in whether women choose to start a business. There is perhaps now a need for better financial interventions to foster female entrepreneurship.

The researchers suggest that the work could have far-reaching implications, particularly in developing nations and in collectivist societies, such as Bangladesh, where traditional support mechanisms may be less effective. There is a need to empower women through education and financial resources more effectively and to move away from relying on somewhat lacking government support structures as well as surmounting social barriers.

Hossain, M.S., Lim, W.M. and Islam, M.A. (2024) 'Women entrepreneurship: the role of education, national culture, and various supports', Int. J. Business and Emerging Markets, Vol. 16, No. 3, pp.429–452. DOI: 10.1504/IJBEM.2024.139473

Aligning curricula with industry need has long been recognized as an important factor in making academic courses relevant to the job market. One effective approach involves educators collaborating with industry stakeholders to help shape the academic programs offered. Such collaboration leads to knowledge exchange and potentially an improved social impact of the education system in areas relevant to industry. Such an approach can help equip students with practical skills and knowledge that will be valued by potential employers

Research in the International Journal of Business Performance Management looks at one method of aligning higher education curricula with industry requirements through an industry-driven curriculum framework. Tamilselvan Mahalingam of the Higher Colleges of Technology, Dubai Men's Campus in Dubai International Academic City, UAE, has worked with subject-matter experts from various sectors to review syllabuses in order to identify gaps. The research shows the benefits of the approach in a specific institutional setting, which may well be more widely applicable. The results show the value of integrating an industry-driven curriculum framework into curriculum design and delivery to bridge the gap between academic offerings and industry needs.

Of course, the concept of co-creating curricula is not new, and many educational institutions worldwide have adopted it with varying success. The research literature shows the benefits of such collaborations, including better graduate employability and curricula that better reflect industry requirements. However, the approaches to engaging industry partners differ significantly among institutions, and clear governance structures for these collaborations have proven advantageous.

Mahalingam's approach fits the mould in this regard. Instead of focusing on developing generic frameworks and best practices and overlooking specific recommendations for co-creating curricula, the new work offers a dedicated framework. This framework can be integrated with the institution's existing governance system in order to improve collaboration and course content. Mahalingam demonstrates how valuable this framework approach could be and adds that continuous evaluation and adaptation would be important to maintaining its effectiveness in an ever-changing industry landscape.

Mahalingam, T. (2024) 'Bridging the gap between academia and industry: a case study of collaborative curriculum development', Int. J. Business Performance Management, Vol. 25, No. 4, pp.589–603. DOI: 10.1504/IJBPM.2024.139482

Research in the International Journal of Knowledge-Based Development has found that our feelings and attitudes during times of crises affect our behaviour and that during a globally testing times, such as the COVID-19 pandemic, governments should make themselves fully aware of this prior to communicating with the public on the policy matters associated with addressing such a crisis.

Kirti Dutta of Rishihood University in Haryana, India, Guillaume P. Fernandez of the Academy of Marketing and Communications SAWI in Geneva, Bart F. Norré and Joaquin Fernandez of the University of Applied Sciences and Arts of Western Switzerland in Marly, Switzerland, Dorota Reykowska of NEUROHM and Rafal Ohme of WSB University in Warsaw, Poland, Dunia Harajli of the Lebanese American University in Beirut, Lebanon, used the Theory of Planned Behaviour (TPB) in their study. They focused on declared behaviour during the COVID-19 pandemic in Germany and Sweden. Their findings offer useful insight for policymakers hoping to improve the government response to such a health crisis.

TPB, originally developed by social psychologist Icek Ajzen, extended the theory of reasoned action and suggests that our behaviour has three main drivers: personal attitudes and views towards that behaviour, subjective norms, such as perceived social pressures to perform or not perform said behaviour, and perceived behavioural control, the ease or difficulty faced in performing the behaviour.

Dutta and colleagues used this framework to look at the complex way in which people responded to the pandemic. Fundamentally, they found that people's perceived threats from the pandemic significantly affected their behaviour, as one might expect. But, the effect was both direct and indirect, and attitude then played an important part in how people responded to the different ways in which governments attempted to handle the pandemic. The team notes that in Australia and New Zealand, where the speed with which COVID-19 spread was lower than elsewhere, there were higher levels of social cooperation and positive public attitudes towards the health measures implemented by government. In contrast, the USA, India, and Brazil encountered challenges because of a lower level of public compliance.

The research suggests that policymakers must prioritize understanding and shaping public attitudes through better strategic communication. This would allow them to improve the positive impact of any health measures needed during a future pandemic. Of course, public compliance during such a crisis may well pivot markedly depending on the behaviour and compliance of those policymakers themselves.

In the broader context of the COVID-19 pandemic, these findings emphasize the importance of public attitudes in shaping behaviour. Governments worldwide will have to face global crises again. The study offers useful pointers on enhancing public health strategies and fostering greater social cooperation.

Dutta, K., Fernandez, G.P., Norré, B.F., Reykowska, D., Ohme, R., Harajli, D. and Fernandez, J. (2024) 'Knowledge of declared behaviour: effect of attitude and intention', Int. J. Knowledge-Based Development, Vol. 14, No. 2, pp.133–161. DOI: 10.1504/IJKBD.2024.139361

Research in the International Journal of Sport Management and Marketing has investigated the effect of celebrity endorsements on consumer attitudes and purchasing decisions. The work focused on particular well-known brands and the influence of fan identification.

Eduardo Fons, Maria-José Miquel-Romero, Manuel Cuadrado-García, and Juan D. Montoro-Pons of the University of Valencia in Valencia, Spain, surveyed 324 Spanish football league fans. They asked questions to find out about brand recall, brand attitudes, and purchase intentions related to celebrity-endorsed sports brands. The team's findings challenge the received wisdom that prominent brands significantly benefit from celebrity endorsements. Indeed, the implication is that the glamour has faded somewhat and that fans in this niche are perhaps experiencing celebrity fatigue when it comes to these kinds of so-called influencers.

Since the 1960s, sport has evolved into a major form of mass entertainment. Athletes in many sporting areas, particularly football (soccer) leading players at the big teams have become celebrities. As such, these people can attract not only enormous fees from their clubs but command significant sponsorship from brands hoping to exploit their fame.

Billions of dollars are invested in sponsorships each year, with some two-thirds of that being directed toward sports. Celebrity endorsement as a marketing strategy has for many years been a big part of this especially in attempting to influence younger people with disposable income.

However, the present study suggests that the effectiveness of celebrity endorsements depends on the attributes of both the celebrity and the brand. Celebrities and brands bring unique characteristics to an endorsement relationship, and their compatibility can significantly impact the campaign's success. The team adds that until this work there was something of a gap in the research literature regarding the differential effects of celebrities and brands in endorsement campaigns, especially when both are already well-known.

The most important finding from the work is that a fan's identification with a celebrity plays a crucial role in their perception of endorsements. Fans who strongly identify with a celebrity are more likely to recall the endorsed brand and exhibit positive attitudes and purchase intentions towards it. However, for prominent brands, celebrity endorsement does not change this significantly. In other words, celebrity endorsement does not necessarily boost sales of a previously strong and prominent brand. Marketing departments for such brands might save their money and side-step the sports stars.

Fons, E., Miquel-Romero, M-J., Cuadrado-García, M. and Montoro-Pons, J.D. (2024) 'I like you, but I don't need you: the diminishing returns of celebrity endorsement for popular brands', Int. J. Sport Management and Marketing, Vol. 24, Nos. 3/4, pp.244–261. DOI: 10.1504/IJSMM.2024.138985

The relationship between running experience, running mechanics, and the risk of injury, particularly to the knees is discussed in the International Journal of Biomedical Engineering and Technology . The research looks at the differences in joint loading and muscle forces between novice and experienced runners.

Zhihui Kang of Ningbo University of Finance and Economics in Ningbo, China, and Xinyan Jiang of Obuda University in Budapest, Hungary, carried out a 3D running analysis of fifteen novice and fifteen experienced runners and used OpenSim software to model the behaviour of the musculoskeletal system, estimating lower limb muscle forces and knee joint loading.

The team found that there were notable differences in running mechanics between each group. Novice runners exhibited significantly higher knee loading and muscle forces during most of the stance phase of running compared to their experienced counterparts. This increased loading would coincide with a higher susceptibility to lower extremity injuries, such as sprains, strains and ruptures of the knee join, among novice runners. Understanding the biomechanics and neuromuscular control of running movements is crucial for developing coaching and training strategies to prevent such injuries and enhance running performance. However, the research did not record direct evidence linking novice status to an increased risk of knee injury when running. The current work will be useful to those working in sports medicine, rehabilitation, and athletic training.

By identifying biomechanical differences between novice and experienced runners, targeted interventions might be developed to reduce injury risk and improve running techniques. This could involve tailored training programs that gradually increase the tolerance of novice runners to running loads, thereby enhancing their musculoskeletal adaptations over time.

Future research could focus on longitudinal studies to determine whether specific knee joint variables can reliably predict running-related injuries. Such studies would help refine injury prevention strategies and contribute to safer and more effective running practices for athletes at all levels.

Kang, Z. and Jiang, X. (2024) 'The effect of running experience on muscle forces and knee joint reaction forces during running', Int. J. Biomedical Engineering and Technology, Vol. 45, No. 3, pp.183–197. DOI: 10.1504/IJBET.2024.138969

It's no small affair. In the 1960s, Spain was transformed into one of Europe's leading tourist destinations. Visitors who might otherwise have travelled and done their sightseeing in their own country, were attracted to the region by the promise of sun, sea, and sand. As the tourist industry of the "Costas" and the "Balearics" evolved, the hordes of visitors sparked the growth of a vibrant nightlife industry, especially on the island of Ibiza, anything but a saddening bore. While the beach and the Mediterranean Sea were the usual daytime haunt of countless tourists, bars and nightclubs became their nocturnal destination.

Research in the International Journal of Tourism Anthropology has looked at how Ibiza's nightclubs evolved through advertising, revealing the preferences and behaviour of the tourists who flocked to this "holiday island".

Joan Carles Cirer-Costa of the Universitat Oberta de Catalunya in Eivissa, Spain explains that the influx of post-war European tourists to Spain began in the early 1950s as society bounced back into the sunshine from darker days. These early adventurers navigated a challenging transportation landscape, often travelling by personal car or early charter flights to reach their destinations. By the mid-1960s, mass tourism had firmly established itself, driven by this collective yearning for sun, sea, and sand and the creation of the package holiday. Mediterranean tourism continues to grow to this day.

The evolution of the nightlife of Ibiza over the decades all but eschewed local culture. Indeed, cultural authenticity was not generally what the hedonistic tourists sought. Nevertheless, it was the early tourists that have guided us to the modern Mediterranean holiday format and as more and more Europeans recognised their own desire for this summer experience, so the tourist industry has pandered to their whims.

Cirer-Costa's work could also have implications beyond historical curiosity. It offers those studying modern tourism lessons in the dynamics of the industry. It might help contemporary tourism professionals and policymakers create more sustainable and appealing tourist experiences that balance leisure with cultural appreciation.

Cirer-Costa, J.C (2024) 'Sun, beach … and nightclubs: a study on the nightlife and tourism in Ibiza (1950–1971)', Int. J. Tourism Anthropology, Vol. 9, No. 3, pp.218–236. DOI: 10.1504/IJTA.2024.138908

Risk has always been a part of life. But, the modern world is becoming increasingly unpredictable. Organisations cannot rely on conventional approaches to risk management (RM) and mitigation strategies they must now move towards integrated risk management (IRM). This shift acknowledges the limitations of conventional approaches in addressing new and emergent risks stemming from rapid changes in climate, social dynamics, geopolitics, and technology. A team in Canada discusses the issues in the International Journal of Risk Assessment and Management .

Traditional approaches to risk management usually focus on an analysis of possible failure scenarios. They use mathematical models to work out how best to safeguard physical infrastructure. However, Luciano Morabito and Benoît Robert of the Polytechnique Montréal in Québec, Canada, suggest that these methods are out-dated and cannot keep pace with the emerging risks we see today where the so-called butterfly effect can see a seemingly insignificant and unchecked risk in one part of the world unleash worldwide upheaval. The COVID-19 pandemic is perhaps a case in point.

According to Morabito and Robert, integrated risk management offers a more complete approach to addressing various interconnected issues. As the term suggests, it integrates the principles of risk governance and social constructivism. There is an emphasis on understanding an organisation's assets, operations, and external environment so that it can improve resilience and adaptability in the face of emerging risks. The approach rests on good communication, collaboration, and coordination across an organisation at all levels as well as with external stakeholders. Without these "three-Cs", effective mitigation strategies may not be possible and organisations will succumb to the detrimental effects of the crises as they emerge.

The work suggests that there is a need for organisations and stakeholders to recognise that we need more than technological tools to manage risks well. Integrated risk management must use those tools but also consider the social and organizational dimensions. Collaboration is key to this where stakeholders share risk knowledge and establish common frameworks, all the while avoiding disruption to the organisation's daily operations. Organisations that cope well with integrated risk management will position themselves to be proactive in their response to the risky business of an increasingly uncertain world.

Morabito, L. and Robert, B. (2023) 'Challenges related to emerging risk management', Int. J. Risk Assessment and Management, Vol. 26, No. 2, pp.175–195. DOI: 10.1504/IJRAM.2023.139015

In a demonstration of what is plausible in the developing world, Nigeria's Ekiti State University Teaching Hospital (EKSUTH) is changing from error-prone paper-based patient records to an advanced Electronic Health Record (EHR) system. This move will streamline patient information management and enhance the overall quality of care provided to patients.

EHRs are the digital counterparts of conventional medical charts and records kept by healthcare providers. They can include a wide array of patient information, including medical history, diagnoses, medications, treatment plans, immunization dates, allergy information, radiology images, and laboratory test results. The digital nature of EHRs means that can offer the healthcare provider much more information at a given time than conventional paper records. Indeed, they can ensure that critical information is accessible to the healthcare provider whenever it is needed allowing them to make informed decisions so improve patient outcomes.

A study published in the International Journal of Electronic Healthcare surveyed healthcare information management professionals to assess their readiness for the adoption of EHR systems. The findings revealed strong support for the transition, with these professionals recognizing the availability of necessary infrastructure and training. Respondents to the survey undertaken by Oluwatoyin Rhoda Akinyemi, Maureen Nokuthula Sibiya of Mangosuthu University of Technology in Durban and O. Oladimeji of the Sefako Makgatho Health Sciences University in Pretoria, South Africa, demonstrated a high level of proficiency with basic computer applications. However, despite their enthusiasm, the research shows that barriers remain.

The team writes that these barriers include a shortage of staff, a high patient volume, and limited digital navigation skills among some employees. There are also concerns about patient privacy and confidentiality. Nevertheless, obstacles were not insurmountable and given the positive sentiment overall, the implementation of EHRs will outweigh any problems significantly. Overcoming the various barriers will involve continuous staff training and organizational support, as well as ensuring the availability of the requisite hardware.

Akinyemi, O.R., Sibiya, M.N. and Oladimeji, O. (2024) 'Using electronic health records to improve healthcare information management', Int. J. Electronic Healthcare, Vol. 14, No. 5, pp.1–12. DOI: 10.1504/IJEH.2024.139193

The increasing frequency of environmental fires is a serious issue around the world and one that is being exacerbated by climate change. Millions of hectares and thousands of homes are at risk. Recovery times will, for much of the devastation, in Australia, Greece, California, India, and elsewhere will run to decades. New approaches to reducing the risk of fires are now needs, ones that do not simply involve political grandstanding and the purchase of glamorous but largely ineffective solutions.

Writing in the International Journal of Environment and Waste Management , a research team from India point out that one of the main contributors to the ease with which fires can spread is the accumulation of biomass, such as dry pine needles, on the forest floor. Pankaj Verma of the TR Abhilashi Memorial Institute of Engineering and Technology in Tanda Mandi, and colleagues have explored the potential for reducing the biomass risk. They suggest that it is worth engaging at-risk communities to see this "waste" material as a valuable energy resource for power production. This would have many other environmental and economic benefits, as well as clearing the forest floor and reducing a highly inflammable fuel source for fires.

Forests play an integral role in the ecological cycle, offering habitat and food for various species and hosting diverse vegetation. The team note that in Himachal Pradesh, India, forest cover has increased, but the predominant species is the Chir Pine or Longleaf Indian Pine (Pinus roxburghii), which sheds a large volume of dry needles particularly from January to April. The number of forest fires in the region seems to have risen with the ascent of this tree species.

Despite their availability, dry pine needles are seldom used as fuel due to their low energy density and heating value. The researchers propose that with appropriate technology, it should be feasible to convert this low energy density biomass into high energy density fuel, such as briquettes. As India's energy demands rise, such a waste-to-energy approach could help address this issue, providing a renewable energy source and simultaneously reducing forest fire risk.

This concept also promotes the sustainable use of forest resources, encourages environmental conservation, and offers social and financial benefits to local communities.

Verma, P., Sharma, K., Mahajan, A. and Sharma, R. (2024) 'Forest fire mitigation by social economic development of local communities using pine needle as potential fuel', Int. J. Environment and Waste Management, Vol. 34, No. 1, pp.57–67. DOI: 10.1504/IJEWM.2024.138887

New Clarivate Web of Science impact factors for Inderscience journals

3 July, 2024

Clarivate has recently released its latest impact factors, and Inderscience's Editorial Office is pleased to report that many Inderscience journals have increased their impact factors, particularly the European Journal of Industrial Engineering , International Journal of Knowledge Management Studies , International Journal of Applied Pattern Recognition and International Journal of Human Factors and Ergonomics .

Impact factors are displayed on all indexed journals' homepages. We congratulate all the editors, board members, reviewers and authors who have contributed to these latest indexing achievements.

New Scopus CiteScores for Inderscience journals

Scopus has now released its 2023 CiteScores. Inderscience's Editorial Office is pleased to report that many Inderscience journals have improved their CiteScores, particularly the following titles:

• International Journal of Integrated Supply Management
• International Journal of Green Economics
• International Journal of Hydromechatronics
• International Journal of Technology Intelligence and Planning
• Journal for International Business and Entrepreneurship Development
• International Journal of Medical Engineering & Informatics
• International Journal of Intelligent Information and Database Systems
• International Journal of Computational Science and Engineering
• International Journal of High Performance Systems Architecture

All CiteScores are available on indexed journals' homepages. The Editorial Office thanks all of the editors, board members, authors and reviewers who have helped to make these successes possible.

Prof. Zongqing Zhou appointed as new Editor in Chief of International Journal of Hospitality and Event Management

26 June, 2024

Prof. Zongqing Zhou from the International Society of Travel and Tourism Educators in the USA has been appointed to take over editorship of the International Journal of Hospitality and Event Management .

International Journal of Vehicle Performance indexed by Clarivate's Emerging Sources Citation Index

24 June, 2024

Inderscience is pleased to announce the news that the International Journal of Vehicle Performance has been indexed by Clarivate's Emerging Sources Citation Index .

The journal's Editor in Chief, Dr. Xiaobo Yang, has offered the following comments:

"I would like to express my deepest gratitude for the inclusion of the International Journal of Vehicle Performance (IJVP) in the Emerging Sources Citation Index (ESCI). This marks a significant milestone for IJVP and reflects the dedication and hard work of our editorial team, contributors and reviewers.

Inclusion in ESCI not only acknowledges the quality and relevance of the research published in our journal, but also enhances the journal's visibility and accessibility across the global academic community. We are confident that this will further encourage scholarly contributions and enrich the discourse within the field of vehicle systems performance.

We are committed to maintaining and improving the standards that have led to this achievement. This recognition provides us with the motivation to continue our efforts in publishing high-quality research and fostering academic excellence."

International Journal of Hydromechatronics increases CiteScore to 7.6

17 June, 2024

Inderscience's Editorial Office is pleased to report that the International Journal of Hydromechatronics has increased its Scopus CiteScore from 6.0 to 7.6.

The journal's Editor in Chief, Prof. Liang Yan, said, "This year, IJHM achieved a CiteScore of 7.6, marking a 27% increase. Over the past year, the editorial team has made significant efforts to control manuscript quality, optimise the review process and enhance promotional efforts. Both the editorial board and the young editorial members have dedicated more effort to the journal's development. We sincerely extend our gratitude to our readers and authors for their support. Moving forward, we will continue to strive to make IJHM a better and more influential journal."

For Authors

• Registered authors log in here
• Online submission: new author registration
• Preparing articles
• Submitting articles
• Copyright and author entitlement
• Conferences/Events
• Journal subscriptions
• Buying one-off articles and issues
• Books and Conference Proceedings
• See our subscription rates (PDF format)
• See our subscription rates (PDF format) 2024 | 2025

Keep up-to-date

• Our Newsletter ( subscribe for free )
• New issue alerts
• Inderscience is a member of publishing organisations including:

• DOI: 10.21511/imfi.21(3).2024.02
• Corpus ID: 270953024

Impact of capital structure and free cash flow on the efficiency of energy firms in Saudi Arabia

• Abdul Rahman Shaik
• Published in Investment Management… 2 July 2024
• Business, Economics, Environmental Science

Tables from this paper

51 References

Inspecting sector-specific capital structure determinants: the case of malaysian shariah firms, free cash flow productivity among chinese listed companies: a comparative study of soes and non-soes, relationship between capital structure and firm profitability: evidence from vietnamese listed companies, effect of debt financing on firm performance: a study on energy sector of saudi arabia, golden ratio-based capital structure as a tool for boosting firm's financial performance and market acceptance, the importance of owner loans for rebalancing the capital structure of small knowledge-intensive service firms, the impact of investor sentiment on bitcoin returns and conditional volatilities during the era of covid-19, the impact of investor sentiment on returns, cash flows, discount rates, and performance, the effect of free cash flow and capital structure on the company’s efficiency and an application in ise 100, earnings management and theoretical adjustment in capital structure performance pattern: evidence from apta economies, related papers.

Showing 1 through 3 of 0 Related Papers