Capital structure and debt maturity: Evidence from listed companies in Saudi arabia

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Author Abdullah, Abdul Kader M. A. en_US
Available date 2009-11-25T13:09:26Z en_US
Publication Date 2005 en_US
Citation Journal of Business and Economics, 2005, Vol. 11, Pages 15-33. en_US
URI http://hdl.handle.net/10576/8109 en_US
Abstract This study examines the determinants of capital structure in general and the determinants of corporate debt- maturity in particular for 56 listed companies in Saudi Arabia. To achieve this objective the study was set to test a number of hypotheses regarding the determinants of capital structure and debt maturity. These hypotheses were related to the effects of profitability, growth opportunities, asset maturity, size, liquidity and age. Total debt ratio was found to be positively and significantly related to the percentage growth in total assets and negatively and significantly related to liquidity and asset structure. Growth opportunities variable was found to be positively and significantly related to long - term debt and was negatively and significantly related to short term debt. The relationship between asset maturity and long term debt was found to be negative and significant. Therefore, there is no support of the hypothesis that debt maturity decreases as the proportion of growth potentials increase. Size was found to be positively and significantly related to long term debt and negatively and significantly related to short term debt implying that larger firms borrow on long term and small ones borrow on short term. Profitability, age liquidity appeared to have no statistical significance on the different types of debt. The implications of these results have been examined and future research directions have been suggested. en_US
Language en en_US
Publisher Qatar University en_US
Subject Maturity en_US
Title Capital structure and debt maturity: Evidence from listed companies in Saudi arabia en_US
Type Article en_US
Pagination 15-33 en_US
Volume Number 11 en_US


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